Yields for corporate bonds and commercial paper (CP) have moderated since September 2018, indicating an easing of liquidity crunch, which had particularly hit non-banking finance companies

131 basis points (bps) – Yields in corporate bond market in May 2019 were lower than in Sept 2018 when the liquidity constraints were at the peak

24 bps – Fall in CP market yields during this period

Corporate bond market

76 bps – Cost of borrowings for AAA-rated housing finance companies (HFCs) fell from Sept

28 bps – It declined for AAA-rated non–NBFCs

CP market

337 – CP issuances in May (Rs 74,708 cr), up from 16 issuances in April 2019; in value terms, they were higher by Rs 66,420 cr

Rs 8,900 cr or 12% – Of total issuances in May were by HFCs, which did not raise short-term funds via CPs in April 2019

Rs 15,808 cr or 21% – Issuances in May were by non-NBFCs

Rs 23,325 cr – Raised by NBFCs, up 4X from Apr 2019

Yields in the NBFC segment have hit a nine-month low

Source: CARE Ratings