The spread between corporate bonds and equivalent maturity government bonds have come down substantially. Although this gives an impression that the bond market is welcoming back corporates, experts say it would be a wrong conclusion to reach.
The spread between the 10-year AAA-rated corporate and equivalent maturity government bonds have fallen to 108 basis points, from about 140 basis points in October end last year. The drop is even sharper for the five-year segment where the spread has contracted to 64 basis points, from about 110 basis points in the end of October. This ...
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First Published: Mon, March 02 2020. 20:27 IST
