one of india top fund manager The risk appetite is changing rapidly on the bonds of companies, as the rapid economic recovery is boosting the financial health of such businesses in particular.
Amit Tripathi, who oversees nearly $15 billion in debt assets at Nippon India Mutual Fund, said, “Low-rated companies that have not only survived but also improved their operational and financial metrics in the downturn are now an attractive asset. investment proposition.” Such firms, he said, would benefit the most rapidly in Asia’s third-largest economy.
Tripathi, who manages India’s top-performing corporate bond fund, said, “Many companies have used the pandemic stimulus to clean up their balance sheets by cutting debt, refinancing at low cost or raising equity and they are now the best. are in good shape.” “It’s giving us the flexibility to invest in quality non-AAA papers.”
According to Crisil Ltd, the local arm of S&P Global Ratings, the ratio of upgrades relative to downgrades in credit ratings of Indian firms reached a decade high of 3 to 1 in the first half of the financial year. Tripathi expects credit scores to improve further in the next 18 to 24 months as the economic revival picks up.
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