Logo


FIIs pull out $1 bn from debt in 2016

Narrowing of yield spreads between US and India bonds triggers outflows

FIIs pull out $1 bn from debt in 2016

Foreigninstitutionalinvestors(FIIs)turnednetsellersofdebtinAugustdespiteasteadyrupee,takingtheiryear-to-datedebtsalesto$1.2billion.Thisisthehighestnetdebtsalesofarsince2013,whenFIIshadsolddebtpaperworthabout$8billion.Incontrast,theseinvestorshavepurchasedequitiesworth$6billionthisyear. Marketparticipantsattributethesalestotheoutflowsincorporatebonds,whichislikelytoaccelerateinthecomingmonthsduetomaturingofforeigncurrencynon-resident(bank)(FCNRB)depositsinSeptember-November.RBIgovernorRaghuramRajan ...