Latest news with #Jiraaf


Time of India
2 days ago
- Business
- Time of India
Corporate bonds in India: From institutional stronghold to broader participation
India's fixed-income landscape is undergoing a quiet yet powerful shift. While equity markets have long dominated headlines, a new narrative is emerging in the bond market in India, led by record-breaking corporate bond issuances , deeper institutional involvement, and a growing appetite for predictable, inflation-beating returns. In FY25, companies raised a record ₹9.9 lakh crore through corporate bonds, according to recent data released by the Reserve Bank of India (RBI). That's a 28% increase over the previous year. The rise in corporate bond issuance signals growing traction in India's corporate bond market. This also points to an uptick in private corporate capex. The increased corporate debt outlay is likely to power growth, spearheading India to the third-largest economy position by 2028. Even as issuance soars, one question remains: Are retail investors benefiting from this growth, or is their participation in the corporate bond market still lagging? Bonds Corner Powered By Corporate bonds in India: From institutional stronghold to broader participation India's corporate bond market sees record growth in FY25. Issuance rises by 28%, signaling increased corporate capex. The overall bond market touches ₹226 lakh crore. Retail participation remains low, but accessibility improves with smaller investment sizes. Interest rates ease, making bonds attractive. Platforms like Jiraaf simplify bond investments. Corporate bonds offer a balanced risk-return profile. India bonds advance as traders build positions for another rate cut Rupee to track dollar recovery, bond market focused on rate cut bets IndusInd Bank to consider raising funds via long-term bonds India bonds flat, traders eye debt supply for cues Browse all Bonds News with A ₹53.6 lakh crore corporate bond opportunity untapped by retail India's overall bond market has now touched ₹226 lakh crore in size (around USD 2.6 trillion), as per RBI's June 2025 Financial Stability Report. Of this, corporate bonds in India account for over ₹53.6 lakh crore in outstanding stock. The rest includes government bonds, treasury bills, and state development loans in India. Yet, despite this expansion, the Indian bond market remains dominated byinstitutional investors. Mutual funds, insurers, banks, and pension funds still hold 96% of outstanding corporate bonds, according to market estimates. Retail participation rate, by contrast, remains in the low single digits—a glaring gap compared to their enthusiasm for equities and gold. Why retail investors hesitated — and why that may be changing Retail investor caution wasn't entirely unfounded. Until recently, many top-rated bonds had minimum investment sizes of ₹1 lakh or more. This ruled out many retail investors. The Securities and Exchange Board of India (SEBI) reduced the minimum ticket size to ₹10,000; these changes have improved the accessibility of the bond market . Liquidity is the second pain point, as the secondary corporate bond market remains uneven, with only 3.8% of the total outstanding stock traded monthly. This lack of depth made it harder for individuals to exit their positions before maturity. This concern is especially relevant for those accustomed to the liquidity of stocks or mutual funds. But the winds are shifting. The minimum investment size has come down sharply. The bond market's liquidity is gradually improving, thanks to stronger regulations, better transparency, and greater accessibility and visibility. Online bond platforms such as Jiraaf are also making it easier for retail investors to participate. The macroeconomic environment is shifting. Interest rates are now easing, with the RBI cutting the repo rate by 100 basis points in 2025. Inflation is gradually cooling. This is prompting more investors to turn to fixed income securities to lock in higher yields. Currently, AAA-rated corporate bonds yield 30-50 basis points more than comparable fixed deposits, while AA-rated corporate bonds offer 50-200 basis points higher returns with a similar level of risk to fixed deposits. The return profile shifts dramatically in favour of investors when A and BBB-rated bonds come into play. These bonds offer 200 to 500 basis points more than fixed deposits with a very balanced risk profile. While some argue that A- and BBB-rated bonds pose a higher risk and thus offer a higher return, the data paints a different picture. The default ratio of investment-grade bonds , which encompasses the AAA to BBB segment, remains low. According to CRISIL, a credit rating agency, BBB-rated bonds witha three-year tenure havethe highest default rate among investment-grade bonds, at just 2.21%. The lower default rates speak to the safety of corporate bonds as an investment alternative to riskier and more volatile asset classes, such as equities, gold, and real estate. The attached CRISIL data gives a detailed breakdown of the default rates for various credit ratings. ET Spotlight India's fixed-income market is also undergoing a technological revolution. Platforms such as the SEBI-regulated OBPP player Jiraaf are making corporate bond investments more accessible than ever. With entry points as low as ₹1,000, even everyday investors can now build fixed-income portfolios that were once the domain of institutions. What is driving the corporate bond market depth Indian corporate balance sheets are at their healthiest, which is giving Indian Inc considerable headroom to borrow. Corporate bonds offer companies more control than bank loans. Strong financials are also allowing firms to raise capital without diluting its stake in the company. Additionally, interest rates are reducing. This has prompted corporates to turn to the bond market to fund expansion while retaining tenure, rates, and repayment cycles. This ease of access is deepening the bond market from the issuer's point of view in FY26. On the other hand, strong demand from foreign portfolio investors (FPIs), as well as institutional and retail demand is driving the supply-side uptick. The FPIs are attracted to the higher returns provided by corporate bonds as G-sec yields decline. Institutional demand is robust, as debt becomes a more attractive asset in the light of equity market volatility. This is also evident in the increasing cash inflow into debt mutual funds over the past months. Equity investments had been the darling of investors for the past decade, with most experts and amateur investors vouching for the growth aspect of the asset class. However, despite market uproar around high returns, the average Nifty50 return over the past decade is 12%. A 12% equity growth barely beats the returns offered by corporate bonds, while posing a much higher risk and volatility. Investors are realising the stability that corporate bonds provide. They are gradually shifting their preference to bonds, focusing on building a well-diversified bond portfolio that includes bonds from different issuers, ratings, and tenures. Investment platforms, such as Jiraaf, are helping investors access the Indian corporate bond market by offering curated bonds with transparent credit scoring, making corporate bonds more accessible to non-institutional investors. In addition to providing curated deals, Jiraaf is also developing tools that simplify bond analysis and make it accessible to all. The first of its kind Bond Analyzer brings analysis to the fixed-income realm, which was previously limited to equities. Looking ahead Despite its growing size and importance, the Indian bond market still lags behind its global peers in terms of retail penetration. The direction is promising. As awareness grows, tools become easier to use, and yields remain attractive, there's reason to believe that 2025 could mark an inflection point for retail entry into corporate debt . For investors seeking to balance risk and return amid equity market volatility, corporate bond investment offers a compelling middle path, blending capital preservation with growth. The views and opinions expressed in the story are independent professional judgment of the experts and we do not take any responsibility for the accuracy of their views. The brand is solely liable for the correctness, reliability of the content and/or compliance of applicable laws. The above is non-editorial content and TIL does not guarantee, vouch or endorse any of it. Please take all steps necessary to ascertain that any information and content provided is correct, updated, and verified.


Time of India
16-07-2025
- Business
- Time of India
India's bond market grows at 25% CAGR in 10 years: Jiraaf data shows surge in private sector issuances
India's bond market is witnessing remarkable growth, with data from the Jiraaf Bond Analyser highlighting an accelerating trend over the past decade. Jiraaf, an online bond investment platform, provides critical insights into this evolving asset class, which is now increasingly favored by both institutional and retail investors . Once largely dominated by government and PSU issuances, India's bond market is undergoing a significant transformation. Bonds Corner Powered By India's bond market grows at 25% CAGR in 10 years: Jiraaf data shows surge in private sector issuances India's bond market is experiencing substantial growth, driven by increased private sector involvement and investor demand for stable returns. Jiraaf Bond Analyser data reveals a decade-long expansion, accelerating post-2020. In 2024, listed bond issuances surpassed ₹9.5 lakh crore. Non-PSU issuances exceeded PSU issuances for the first time, indicating improved private sector credit profiles and investor confidence. India bonds steady as traders await fresh cues India bonds steady as traders await fresh cues Indonesia launches 5-year US dollar Islamic bond, 10-year green sukuk, term sheet shows India's long-term bonds decline before debt sale, Treasury moves pinch Browse all Bonds News with Driven by rising private sector participation and increasing investor appetite for stable, fixed-income products, the market is expanding at an unprecedented pace. Data from the Jiraaf Bond Analyser—part of the online bond investment platform Jiraaf, founded by Saurav Ghosh and Vineet Agrawal—shows that India's debt capital market is no longer just an institutional playground, but an evolving opportunity for retail investors as well. Live Events A decade of growth, with acceleration post-2020 Over the last decade, India's bond market has expanded at a CAGR of around 25%, with growth accelerating over the past four years as both corporate and public sector issuers increasingly turned to debt markets to meet their funding needs. In 2024 alone, listed bond issuances crossed Rs 9.5 lakh crore (US$110 billion), signaling growing depth and liquidity in India's debt markets. A key inflection point was the post-COVID era, particularly after 2021. The global search for yield—combined with abundant liquidity and ultra-low interest rates—encouraged both institutional and high-net-worth investors to seek alternative, stable investment avenues. Indian corporates, especially in the private sector, capitalized on this shift to diversify their funding sources. Private players overtake PSUs in bond issuances What's particularly noteworthy is the changing market composition. Traditionally seen as a space dominated by Public Sector Undertakings (PSUs), India's bond market is now seeing a surge in private sector activity. According to Jiraaf data, non-PSU issuances crossed Rs 4.9 lakh crore (US$56 billion) in 2024, surpassing PSU issuances for the first time. This shift reflects two important trends: Improved credit profiles of private corporates post-deleveraging and operational efficiency improvements. Increased confidence among institutional and retail investors in private sector issuers, driven by regulatory reforms and better corporate governance standards. The move also underscores a structural shift: as India's economy diversifies and formalises, more companies outside the public sector are now using debt markets for growth capital, refinancing, and working capital needs. Lessons from the IL&FS crisis and post-pandemic reforms The IL&FS crisis of 2018 was a watershed moment, exposing over-reliance on concentrated sources of funding like banks and NBFCs. This led to greater awareness around capital diversification. Regulatory reforms post-crisis and proactive steps by the Reserve Bank of India (RBI) have made bond markets more accessible and transparent. Bonds 101: Why retail investors should care For individual investors, bonds present a compelling alternative to traditional instruments like fixed deposits or equities. Simply put, bonds are fixed-income instruments where governments or corporations borrow money from investors, promising regular interest payments and principal repayment at maturity. Unlike equities, bonds offer: Predictable income streams through periodic interest payments. Capital preservation due to predefined maturity. Lower risk compared to equities, while delivering competitive returns. Portfolio diversification, acting as a stabilising force during market volatility. With platforms like Jiraaf simplifying access to bonds, even retail investors can now participate in what was earlier a domain reserved for large institutions. ( Disclaimer : Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)


Economic Times
16-07-2025
- Business
- Economic Times
India's bond market grows at 25% CAGR in 10 years: Jiraaf data shows surge in private sector issuances
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads A decade of growth, with acceleration post-2020 Private players overtake PSUs in bond issuances Tired of too many ads? Remove Ads This shift reflects two important trends: Lessons from the IL&FS crisis and post-pandemic reforms Bonds 101: Why retail investors should care Unlike equities, bonds offer: India's bond market is witnessing remarkable growth, with data from the Jiraaf Bond Analyser highlighting an accelerating trend over the past an online bond investment platform, provides critical insights into this evolving asset class, which is now increasingly favored by both institutional and retail investors Once largely dominated by government and PSU issuances, India's bond market is undergoing a significant by rising private sector participation and increasing investor appetite for stable, fixed-income products, the market is expanding at an unprecedented from the Jiraaf Bond Analyser—part of the online bond investment platform Jiraaf, founded by Saurav Ghosh and Vineet Agrawal—shows that India's debt capital market is no longer just an institutional playground, but an evolving opportunity for retail investors as the last decade, India's bond market has expanded at a CAGR of around 25%, with growth accelerating over the past four years as both corporate and public sector issuers increasingly turned to debt markets to meet their funding 2024 alone, listed bond issuances crossed Rs 9.5 lakh crore (US$110 billion), signaling growing depth and liquidity in India's debt markets.A key inflection point was the post-COVID era, particularly after 2021. The global search for yield—combined with abundant liquidity and ultra-low interest rates—encouraged both institutional and high-net-worth investors to seek alternative, stable investment corporates, especially in the private sector, capitalized on this shift to diversify their funding particularly noteworthy is the changing market composition. Traditionally seen as a space dominated by Public Sector Undertakings (PSUs), India's bond market is now seeing a surge in private sector to Jiraaf data, non-PSU issuances crossed Rs 4.9 lakh crore (US$56 billion) in 2024, surpassing PSU issuances for the first credit profiles of private corporates post-deleveraging and operational efficiency confidence among institutional and retail investors in private sector issuers, driven by regulatory reforms and better corporate governance move also underscores a structural shift: as India's economy diversifies and formalises, more companies outside the public sector are now using debt markets for growth capital, refinancing, and working capital IL&FS crisis of 2018 was a watershed moment, exposing over-reliance on concentrated sources of funding like banks and NBFCs. This led to greater awareness around capital diversification. Regulatory reforms post-crisis and proactive steps by the Reserve Bank of India (RBI) have made bond markets more accessible and individual investors, bonds present a compelling alternative to traditional instruments like fixed deposits or put, bonds are fixed-income instruments where governments or corporations borrow money from investors, promising regular interest payments and principal repayment at income streams through periodic interest preservation due to predefined risk compared to equities, while delivering competitive diversification, acting as a stabilising force during market platforms like Jiraaf simplifying access to bonds, even retail investors can now participate in what was earlier a domain reserved for large institutions.: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)


Time of India
17-06-2025
- Business
- Time of India
Jiraaf launches India's first Bond Analyser to decode fixed-income investing
2The bond market is growing rapidly and is accompanied by a falling interest rate. Earlier this month, the Reserve Bank of India (RBI) announced a larger-than-expected 50 basis point rate cut, lowering the repo rate to 5.50%, marking its third consecutive cut this year. Even with this rapid growth, investor tools haven't kept pace to make smart decisions. With interest rates on fixed deposits (FD) expected to go even lower, bonds may be the next best choice for investors. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like An engineer reveals: 1 simple trick to get all TV channels Techno Mag Learn More Undo With this in mind, bonds and fixed-income investments platform Jiraaf has introduced its all-new tool— Bond Analyzer, which will support smart investing with sharper insight to investors. Bonds Corner Powered By Jiraaf launches India's first Bond Analyser to decode fixed-income investing Jiraaf has launched Bond Analyzer, a tool for bond investors. It aims to simplify fixed-income investing. The tool offers insights into market trends and bond comparisons. It helps investors make informed decisions. Bond Analyzer uses data from sources like FIMMDA and SEBI. It assists in assessing creditworthiness and comparing yields. The tool is designed for both new and experienced investors. Indian bond yields, swap rates ease after dovish comments from RBI chief Banks may go for short-term G-Secs with CRR cut in Sept RBI accepts bids worth Rs 9,296 crore in switch auction India bond yields in narrow range as traders eye cues from oil, Fed Browse all Bonds News with ETMarkets had an interaction with Vineet Agrawal, Co-founder of Jiraaf, who shared his insights on the Bond Analyzer and how it will support investors in making informed decisions while investing in bonds. Here are the excerpts from his chat: What inspired the creation of Bond Analyser, and how does it address the current pain points in India's fixed-income market for both new and seasoned investors? Live Events When you look at the equity market, there are plenty of tools available for research, analysis, and comparison. But for bond investors? Practically nothing. That's a big gap, especially now, as retail participation in India's bond market is steadily rising. The reality is that individual retail investors do not have the same time or access to deep data as institutions do. And without tools to compare bond investment opportunities, making informed decisions becomes tough. That's exactly why we built the Bond Analyser Suite. It's India's first comprehensive fixed-income intelligence platform — designed to bring everything investors need into one place. Whether you're new to bonds or an experienced investor, the suite helps you decode market trends, compare issuances, and truly understand the landscape. In short, it gives investors the clarity and confidence to make smarter bond investments. You mentioned this is the first tool of its kind in the OBPP space. Can you elaborate on what sets Bond Analyser apart from existing tools or platforms in the Indian market? Absolutely. We're proud to say that Jiraaf's Bond Analyser is the first-of-its-kind bond analysis tool in the OBPP space. It reflects our core belief — that fixed-income investing should be as transparent and accessible as equity investing. Right now, there are no tools available in India that let retail investors compare yields on similarly rated bonds by tenure, credit rating, or structure — a basic, yet powerful lens for making smarter decisions. That's the gap we set out to solve. Bond Analyser brings institutional-grade analysis to every investor's fingertips. Whether you're looking for higher yields, lower risk, or specific tenures, this tool helps you slice the data your way and invest with confidence. How does the tool ensure the accuracy and timeliness of the bond market data it aggregates and visualizes? Are there any partnerships or proprietary data sources involved? The Bond Analyser tool has been developed entirely in-house by Jiraaf's experienced teams across functions. We sourced information from a wide range of credible public sources, including FIMMDA, NSDL, CDSL, NSE/BSE, SEBI, and others. Our risk and finance teams play a key role in aggregating and validating this data. We've built proprietary data-cleaning and normalization frameworks that allow us to merge fragmented datasets, remove inconsistencies, and generate reliable, high-quality insights. This curated data is then visualized in the Bond Analyser , helping investors make more informed fixed-income investment decisions. While we don't currently rely on proprietary or partner-only data sources, the value lies in how we transform publicly available data into actionable intelligence using our proprietary logic. One standout feature is issuer landscape clarity. How can investors use this data to assess creditworthiness or spot issuance trends better before they become mainstream? The Bond Analyser brings clarity to who is tapping into the debt markets, how often, and for how much. By tracking issuance frequency, size, and mode, investors can spot emerging trends, assess market appetite, and better gauge a company's borrowing behavior — key signals when evaluating creditworthiness and anticipating supply-demand shifts. Can you walk us through how the yield comparison feature works—especially in terms of bond-to-bond comparisons and identifying yield outliers? One of the most dynamic and impactful features of our Bond Analyser Suite from the investor perspective is the 'Yield Comparison' feature. The feature enables multiple comparisons, providing the user with a multifaceted insight into bond yields. It is made to make your bond research easier and sharper. You can: Compare a bond's yield with government securities to see the risk premium you're getting. Look across different credit ratings to understand how yields shift with risk. Even stack up bonds from different issuers side by side to spot outliers or better-value picks. It's a quick way to cut through the noise and make more informed investment calls. How do you see retail or HNI investors using this tool differently from institutional players? Is the interface or insight delivery tailored to different risk appetites or experience levels? The Bond Analyser is designed for everyone—whether you're a first-time retail investor, a seasoned HNI, or somewhere in between. It simplifies complex bond data like yields, risk, and issuance trends into easy, actionable insights. When it comes to expected returns, we provide a short range with one standard deviation, considering variations influenced by ticket sizes. While institutional players may find value in the depth of data, the tool is built with individual investors in mind—making professional-grade bond analysis accessible to all, regardless of investment size or experience. Will the Bond Analyser evolve to include scenario modelling—for example, how bond portfolios may perform under different macroeconomic conditions or interest rate movements? Launching the Bond Analyser is just the first step—we see it as the foundation for a much larger journey. The current version already offers historical trends, helping users understand how market factors have influenced interest rates over time. While scenario modelling isn't part of this release, it's on our radar. As we gather more feedback from users, we'll look to add features like future rate simulations, ideal portfolio suggestions, and comparative tools—building the product around what investors truly need. With structured debt instruments gaining traction, does the tool also include analysis or comparability of such products, or is it currently focused solely on traditional corporate bonds? Yes, Structured Debt Investments , also called SDIs, are gaining traction as the debt market becomes more sophisticated and formalized in India. We have SDIs available on the Jiraaf platform to invest, and we aim to bring a lot of SDI opportunities in the coming weeks and months; however, from the Bond Analyser perspective, it will focus solely on bond analysis for the time being. Over time, we may incorporate SDIs or launch a product specifically designed for SDIs. With the RBI implementing a 50 bps rate cut recently, how does Bond Analyser help investors recalibrate their fixed-income strategies in this shifting rate environment? The Bond Analyser is a historical analysis tool—not a yield predictor—but it's highly relevant in a changing rate environment. With the RBI's 50 bps rate cut, yields are adjusting, and the tool reflects these shifts using up-to-date data from both primary and secondary markets. It helps investors see how yields are compressing across credit ratings and tenures, enabling smarter portfolio decisions, especially if returns dip below their targets. No guesswork, no hunting across sources—just clear trends, all in one place. Are you observing any emerging patterns in yield behaviour or investor sentiment post the rate cut, and how does the tool surface those trends for the user? Yields have largely remained somewhat steady post the 50-bps rate cut, largely because the market had already priced in a 100-bps cut for FY25–26. However, new bond issuances are expected to come at lower coupon rates as the market aligns with the new rate cycle. We are seeing strong investor demand for bonds as many look to lock in current yields before they drop further. At the same time, issuers are actively raising capital to take advantage of lower borrowing costs. This balance of rising demand and increased supply is keeping yields stable, for now. The Bond Analyser surfaces these trends in its market insights section, helping investors stay ahead of shifting sentiment and issuance patterns. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)


Mint
11-06-2025
- Business
- Mint
Trade talks fuel market rally: Time to rework your strategy?
Indian stock markets surged on June 11 as hopes of a near-term trade agreement between India and the United States lifted investor sentiment. Ongoing bilateral talks in New Delhi between trade officials from both nations focused on enhancing market access, easing digital trade restrictions, and reducing customs barriers. With the July 9 tariff deadline looming, policymakers expressed confidence that a deal could be finalized soon—fueling a rally in the benchmark indices and prompting market experts to share their strategic investment advice. Over the past week, US and Indian officials engaged in extensive dialogue aimed at resolving long-standing trade disputes and improving bilateral commerce. The discussions, which remain confidential, were described as productive by an Indian government official. India's Foreign Minister noted that the country was "hopeful" of sealing an agreement before the current 90-day pause on reciprocal tariffs expires on July 9. Sensex surged 391 points to reach an intraday high of 82,783.51, while Nifty rose 118 points to 25,222.40, reflecting investor optimism. A potential breakthrough in trade relations, particularly with the US—formerly India's largest trading partner—could significantly improve the export landscape and ease tariff-related concerns. Despite a persistent trade deficit of $45 billion, both sides aim to push bilateral trade to $500 billion, although India is cautious about concessions in sensitive sectors like agriculture. Saurav Ghosh, Co-founder of Jiraaf, believes the market may remain volatile until the deal is finalized, but any resolution would be a net positive. 'A successful agreement—even with India taking a more flexible stance—could boost consumer sentiment, increase corporate capex, and attract new investments. For long-term investors, this reinforces the importance of staying invested in equities and mutual funds through a buy-and-hold strategy,' he said. Ghosh also advised cautious sectoral allocation, especially into beneficiaries of a trade-driven rally, while using fixed-income instruments to manage volatility. Anil Rego, Founder and Fund Manager at Right Horizons PMS, said the deal could unlock new opportunities for exporters, particularly in digital services and high-value manufacturing. 'Investors are hopeful about an interim pact by June. If achieved, this could reduce trade friction and strengthen economic ties. Combined with the RBI's recent policy support, including a 100bps rate cut and ₹ 2.5 trillion liquidity injection, this sets a favourable backdrop for Indian equities,' Rego said. According to Mayank Jain, Market Analyst at export-oriented sectors stand to benefit the most if trade flows improve. 'Pharma, specialty chemicals, and IT players such as Dr. Reddy's, Divi's Labs, and Infosys could see earnings upgrades,' he said. However, he cautioned that agriculture and segments of the auto industry may face pressure due to potential tariff reductions for US imports. Jain also flagged uncertainties stemming from recent US tariff hikes on Indian steel and aluminum and the 26 percent reciprocal tariffs temporarily suspended until July 9. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.