Latest news with #AxisAMC
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Business Standard
05-08-2025
- Business
- Business Standard
Rally in long bonds nears end as key drivers weaken, says Axis AMC
The nearly 15-month rally in long-duration bonds is likely over unless a slowdown in economic growth triggers aggressive rate cuts or the bonds are included in new global indices, Axis AMC said in a note on Tuesday. 'The primary concern for long-duration bonds is no longer about spreads or yield levels — it lies in the deteriorating demand–supply dynamics, both structurally and tactically,' wrote Devang Shah, head – fixed income, Axis Mutual Fund. In the financial year (FY) 2026, demand for long-duration bonds (10 years and above) is estimated at ₹10.8 trillion, while supply is expected to touch nearly ₹12 trillion from central government and state development loans (SDLs) with maturities of 15–50 years, according to the note. Additionally, demand is likely to be impacted by revised Held to Maturity (HTM) guidelines for banks, increased equity allocation under the National Pension System (NPS), and restrictions on incremental foreign portfolio investor (FPI) participation in securities beyond 14 years under the Fully Accessible Route (FAR). Other drivers behind the rally have also weakened. The Reserve Bank of India's (RBI's) shift in policy stance signals that aggressive rate cuts are unlikely, while the scope for further fiscal consolidation — a recent market support — is also approaching its limits, the note said. Going by past trends, any significant decline in yields of longer-dated bonds from current levels is unlikely. 'Over the longer term, it is observed that the yields do not fall below 6.75 per cent in the 30-year bonds,' Shah stated. 'Investors should consider shifting to short-duration or accrual strategies. The steepening yield curve favours 2–5-year corporate bonds, which offer better risk-adjusted returns,' he added.
Business Recorder
05-08-2025
- Business
- Business Recorder
India bonds inch lower ahead of RBI policy decision
MUMBAI: Indian government bonds dipped slightly on Tuesday as traders braced for the central bank's policy decision a day later. The yield on the benchmark 10-year bond settled at 6.3321%, compared with Monday's close of 6.3179%, while the yield on the 6.68% 2040 bond ended at 6.6888% versus 6.6611% in previous close. Bond yields move inversely to prices. The spread between 10-year and 15-year bond government bond yields widened to 35 basis points during the day, the most since July 1. 'While interest rates are likely to remain lower for an extended period, the structural rally in long bonds appears to have largely played out,' strategists at Axis AMC said in a note. 'Unless India faces a significant growth shock where we see aggressive rate cuts or sees renewed momentum from inclusion in Bloomberg indices, which improves the demand-supply dynamics, we believe the scope for rally in long duration bonds is limited.' India's 10-year bond yield falls most in 12 weeks tracking US peers Investors will monitor any dovish commentary or downward revisions to economic forecasts by the RBI on Wednesday, which could extend the decline in government bond yields and overnight index swap rates, even in the absence of a rate cut, treasury officials said. Some market participants expect a 25 bp cut in the August policy, while the majority anticipate that the RBI will hold the rates steady. 'Further downside risks to growth have resurfaced amid uncertainty from the tariff hikes,' Kotak Mahindra Bank said in a note. 'While our base case remains for a 25 bps rate cut, the odds are evenly balanced given the downside risk on the INR due to the tariff uncertainties.' Rates India's overnight index swap rates ended lower on Tuesday, continuing the previous day's drop. The one-year OIS rate ended 1 basis point lower at 5.44% and the two-year OIS rate dropped 2 bps to 5.39%. The liquid five-year OIS rate ended about 2 bps lower at 5.6375%.
Time of India
22-05-2025
- Business
- Time of India
Axis AMC announces final close of Axis Structured Credit AIF II at Rs 740 crore
Axis Asset Management Company announces the final close of Axis Structured Credit AIF II, successfully raising commitments of approximately Rs 740 crore. The fund has garnered significant interest from investors, reinforcing the firm's position in the structured credit investment space. The fund received strong backing from a diverse investor base, with close to more than half of commitments coming from institutional investors, including insurance companies, corporates (both listed and unlisted), and family offices. The remaining commitments were secured from HNIs and wealth management channels, underscoring the trust and confidence placed in Axis AMC 's expertise in structured credit investments, according to a release by the fund house. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like The Most Gorgeous Female Athletes Ranked. But Did We Get It Right? Click Here Undo Also Read | MF Tracker: Can this mega largecap fund add stability to your portfolio in volatile market? 'The successful close of Axis Structured Credit AIF II reflects our continued commitment to providing investors with high-quality credit investment opportunities. The strong participation from institutional and wealth investors underscores confidence in our ability to navigate evolving market dynamics and deliver superior risk-adjusted returns. This fund aligns with our broader vision of offering innovative investment solutions that cater to sophisticated capital allocators," said B. Gopkumar , MD & CEO, Axis AMC. Live Events Axis Structured Credit AIF II aims to create a highly diversified portfolio, ensuring prudent risk management through disciplined exposure limits the fund will primarily focus on structured credit opportunities, with most of the individual deals ranging between Rs 50-65 crore, enabling capital deployment across select assets, while investing not more than 10% of fund size in a single transaction. The fund will primarily focus on structured credit opportunities, with most of the individual deals ranging between Rs 50-65 crore, enabling precise capital deployment across select assets, while ensuring not to invest more than 10% in a single security for each deal size. Also Read | Mutual funds for beginners: What strategy should students adopt to start investing? With a total tenure of five years from its first close in October 2023, the fund will actively capitalize on prevailing liquidity conditions, transitioning toward shorter-term bonds and enhanced corporate debt exposure. As liquidity remains abundant, the fund is positioned to take advantage of tightening credit spreads and robust corporate balance sheets, ensuring well-calibrated investment strategies. "We believe structured credit presents a compelling opportunity in today's dynamic market environment. With Axis Structured Credit AIF II, our approach has been to offer bespoke financial solutions, through well structured transactions to key relationship clients. Our commitment to disciplined risk management and diversification remains at the core of our strategy, ensuring sustainable value creation for investors," said Nachiket Naik , Head – Structured Credit, Axis AMC.
Economic Times
22-05-2025
- Business
- Economic Times
Axis AMC announces final close of Axis Structured Credit AIF II at Rs 740 crore
Axis Asset Management Company announces the final close of Axis Structured Credit AIF II, successfully raising commitments of approximately Rs 740 crore. The fund has garnered significant interest from investors, reinforcing the firm's position in the structured credit investment fund received strong backing from a diverse investor base, with close to more than half of commitments coming from institutional investors, including insurance companies, corporates (both listed and unlisted), and family offices. The remaining commitments were secured from HNIs and wealth management channels, underscoring the trust and confidence placed in Axis AMC's expertise in structured credit investments, according to a release by the fund house. Also Read | MF Tracker: Can this mega largecap fund add stability to your portfolio in volatile market? 'The successful close of Axis Structured Credit AIF II reflects our continued commitment to providing investors with high-quality credit investment opportunities. The strong participation from institutional and wealth investors underscores confidence in our ability to navigate evolving market dynamics and deliver superior risk-adjusted returns. This fund aligns with our broader vision of offering innovative investment solutions that cater to sophisticated capital allocators," said B. Gopkumar, MD & CEO, Axis AMC. Axis Structured Credit AIF II aims to create a highly diversified portfolio, ensuring prudent risk management through disciplined exposure limits the fund will primarily focus on structured credit opportunities, with most of the individual deals ranging between Rs 50-65 crore, enabling capital deployment across select assets, while investing not more than 10% of fund size in a single fund will primarily focus on structured credit opportunities, with most of the individual deals ranging between Rs 50-65 crore, enabling precise capital deployment across select assets, while ensuring not to invest more than 10% in a single security for each deal size. Also Read | Mutual funds for beginners: What strategy should students adopt to start investing?With a total tenure of five years from its first close in October 2023, the fund will actively capitalize on prevailing liquidity conditions, transitioning toward shorter-term bonds and enhanced corporate debt exposure. As liquidity remains abundant, the fund is positioned to take advantage of tightening credit spreads and robust corporate balance sheets, ensuring well-calibrated investment strategies. "We believe structured credit presents a compelling opportunity in today's dynamic market environment. With Axis Structured Credit AIF II, our approach has been to offer bespoke financial solutions, through well structured transactions to key relationship clients. Our commitment to disciplined risk management and diversification remains at the core of our strategy, ensuring sustainable value creation for investors," said Nachiket Naik, Head – Structured Credit, Axis AMC. (Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
