HNIs tap new ways to protect debt investments amid record fund raising

Many are looking at covenants previously available only to institutions, such as first loss default guarantees. Covered bonds also gaining in popularity

Topics
high networth individuals | Debt Funds | HNIs

Sachin P Mampatta  |  Mumbai 

Wealthy individuals are looking at innovative ways of making sure they get their money back amid record debt fund raising. They are increasingly seeking control over cash generated from certain borrower assets or guarantees against any initial losses, according to people familiar with the matter.

This comes even as money raised through the private placement of debt instruments hit the highest ever for the first half of a financial year. Issuers raised Rs 3.7 trillion by privately selling debt instruments to a limited number of investors in the six months ending September 2020. This is ...

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, October 07 2020. 18:56 IST
RECOMMENDED FOR YOU
.