Latest news with #JiraafBondAnalyser
Mint
2 days ago
- Business
- Mint
What are bonds and how do they provide stable returns for retail investors? — Everything you need to know
Once a niche segment reserved for institutions and government borrowers, India's bond market is undergoing a significant revolution. Backed by a surge in private sector issuances and a growing appetite among retail investors, the Indian bond market is now expanding at a pace that's hard to ignore. According to data from the Jiraaf Bond Analyser, India's debt capital market has grown at a compound annual growth rate (CAGR) of 25% over the last decade. As interest in non-equity assets grows amid market volatility and rate cycle shifts, understanding how the bond market works — and where it's headed — is more crucial than ever. Bonds are financial instruments where you lend money to a government, organisation, or company for a fixed period. In return, the lender receives regular interest payments, and at maturity, the initial investment, known as the principal or the face value, is repaid. On a fundamental level, bonds are considered more stable than equity investments, making them lucrative for investors who aspire to preserve their wealth and earn steady returns. When you are purchasing a bond, you are essentially becoming a lender. Furthermore, every bond is distinct and comes with important features: Face value: This is the amount you will receive at maturity. This simply means that you will receive the initial face value payment made by you upon the completion of the tenure of your bond. This is the amount you will receive at maturity. This simply means that you will receive the initial face value payment made by you upon the completion of the tenure of your bond. Interest rate (Coupon): This is the interest rate paid to you, generally on a semi-annual or annual basis. Annual here means you will get the entire payment once a year, whereas semi-annual means that you will get the complete payment in two parts, i.e., every six months. This is the interest rate paid to you, generally on a semi-annual or annual basis. Annual here means you will get the entire payment once a year, whereas semi-annual means that you will get the complete payment in two parts, i.e., every six months. Maturity date: The date when the issuer returns your principal amount is known as the maturity date. For example, if you buy a bond issued by the Government of India for ₹ 20,000 at an interest rate of 6% with a 5-year maturity, then you would earn ₹ 1,200 every year. Further, after five years, you will get your ₹ 20,000 back. There are many benefits of investing in bonds for investors looking to diversify beyond equity market: Regular income: These investment tools are exceptional for retirees or those seeking a steady income. This is possible due to periodic interest payments. These investment tools are exceptional for retirees or those seeking a steady income. This is possible due to periodic interest payments. Lower risk: Indian government bonds, i.e., G-Secs and AAA-rated corporate bonds, are generally safer than equity investments due to lower volatility. Indian government bonds, i.e., G-Secs and AAA-rated corporate bonds, are generally safer than equity investments due to lower volatility. Diversification: Including bonds can boost the diversification of your portfolio. It can offset fluctuations from equities, especially during volatile market conditions. It can also provide a fairly reasonable hedge for wealth conservation during recessions and economic downturns. You can invest in bonds in the country through: Direct purchase of government bonds: This can be done through the Reserve Bank of India's retail platform. This can be done through the Reserve Bank of India's retail platform. Invest in bond mutual funds: These are funds that pool money to buy bonds and provide easy access. These are funds that pool money to buy bonds and provide easy access. Stock exchanges and brokers: Government and corporate bonds are also readily available on the BSE and NSE for investments. Aspirational investors can look to invest in them through these platforms. Therefore, given bonds provide safety, comfort, and predictability in returns. Still, they carry risks such as changes in interest rates or corporate defaults. Hence, by clearly acknowledging how bonds work, investors can better protect their capital and generate income consistently. Holistically, bonds are investment options that can contribute to long-term financial stability and growth. For all personal finance updates, visit here. Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should assess their risk profile and consult a qualified financial adviser before making bond investments.
Economic Times
22-07-2025
- Business
- Economic Times
NBFCs lead India's corporate bond market as private placements dominate: Jiraaf Bond Analyser
India's corporate bond market is experiencing significant growth, largely fueled by NBFCs due to their reliance on capital markets for funding. Banks, however, have become more cautious with bond issuances amid rising interest rates, favoring deposit mobilization. Private placements dominate debt issuance, offering efficiency, while regulators aim to boost public debt offerings for broader investor participation. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads India's corporate bond market continues to witness robust growth, driven largely by the financial sector, with Non-Banking Financial Companies (NBFCs) leading the to data from the Jiraaf Bond Analyser platform, the financial sector accounts for the largest share of borrowings through capital markets, underlining its reliance on access to capital for onward both banks and NBFCs, diversifying funding sources is increasingly seen as a strategic tool to mitigate business have emerged as the dominant issuers of Non-PSU bonds, especially since 2019, posting a compound annual growth rate (CAGR) of 25% in bond issuances during this banks, NBFCs typically lack access to low-cost retail deposits and, therefore, depend heavily on capital markets to meet their funding post-Covid period further accelerated this trend, as NBFCs capitalised on the low-interest-rate environment to ramp up their borrowings through bond contrast, banks have shown more conservative borrowing patterns in recent years. Post-2022, bond issuances by banks through capital markets saw a notable decline, as the Reserve Bank of India (RBI) hiked repo rates by 250 basis points between May 2022 and February shift in the interest rate environment prompted banks to adopt a cautious approach, focusing more on deposit mobilisation rather than relying on capital market key insight from Jiraaf's data is the overwhelming dominance of the private placement route in India's listed bond 95% of listed bond issuances are executed via private placements, where debt securities are offered directly to a select group of institutional or high-net-worth route offers issuers faster execution, reduced regulatory burden, and lower disclosure requirements compared to public comparison, a public offer functions similarly to an IPO, inviting broader investor participation with higher compliance and disclosure norms mandated by SEBI. However, growth in public debt offerings remains muted, partly due to the procedural complexity and stringent regulatory this, SEBI has initiated steps to ease compliance and disclosure norms for public debt offers, aiming to promote broader participation in the corporate bond corporate bond market is poised for further evolution as regulators push for greater transparency and wider investor NBFCs are expected to remain the primary issuers, banks may gradually return to the market if interest rates the continued preference for private placements reflects both issuer convenience and investor demand for bespoke debt the government and regulators working to deepen and diversify India's debt market, platforms like Jiraaf are helping retail and institutional investors navigate opportunities in corporate bonds, facilitating wider adoption beyond traditional fixed deposits and mutual funds.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Time of India
22-07-2025
- Business
- Time of India
NBFCs lead India's corporate bond market as private placements dominate: Jiraaf Bond Analyser
India's corporate bond market continues to witness robust growth, driven largely by the financial sector, with Non-Banking Financial Companies (NBFCs) leading the charge. According to data from the Jiraaf Bond Analyser platform, the financial sector accounts for the largest share of borrowings through capital markets, underlining its reliance on access to capital for onward lending. Explore courses from Top Institutes in Select a Course Category MCA Project Management Operations Management Artificial Intelligence Product Management Data Science Public Policy others MBA Technology Cybersecurity Degree Management CXO Digital Marketing Finance Data Science Design Thinking Others Leadership Skills you'll gain: Programming Proficiency Data Handling & Analysis Cybersecurity Awareness & Skills Artificial Intelligence & Machine Learning Duration: 24 Months Vellore Institute of Technology VIT Master of Computer Applications Starts on Aug 14, 2024 Get Details by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like War Thunder - Register now for free and play against over 75 Million real Players War Thunder Play Now Undo For both banks and NBFCs, diversifying funding sources is increasingly seen as a strategic tool to mitigate business risks. Bonds Corner Powered By NBFCs lead India's corporate bond market as private placements dominate: Jiraaf Bond Analyser India's corporate bond market is experiencing significant growth, largely fueled by NBFCs due to their reliance on capital markets for funding. Banks, however, have become more cautious with bond issuances amid rising interest rates, favoring deposit mobilization. Private placements dominate debt issuance, offering efficiency, while regulators aim to boost public debt offerings for broader investor participation. Japan bonds fall on coalition's poll defeat as market reopens after holiday RBI accepts Rs 17,274 crore in bond switch auction, aims to manage fiscal pressure India's investment trusts to expand debt fundraising as yields drop, analysts say Corporate bonds in India: From institutional stronghold to broader participation Browse all Bonds News with NBFCs Driving Non-PSU Bond Issuance NBFCs have emerged as the dominant issuers of Non-PSU bonds, especially since 2019, posting a compound annual growth rate (CAGR) of 25% in bond issuances during this period. Live Events Unlike banks, NBFCs typically lack access to low-cost retail deposits and, therefore, depend heavily on capital markets to meet their funding requirements. The post-Covid period further accelerated this trend, as NBFCs capitalised on the low-interest-rate environment to ramp up their borrowings through bond issuances. Banks Turning Cautious Amid Rising Rates In contrast, banks have shown more conservative borrowing patterns in recent years. Post-2022, bond issuances by banks through capital markets saw a notable decline, as the Reserve Bank of India (RBI) hiked repo rates by 250 basis points between May 2022 and February 2023. This shift in the interest rate environment prompted banks to adopt a cautious approach, focusing more on deposit mobilisation rather than relying on capital market borrowings. For Full Coverage on Bonds – click here Private Placements Dominate Debt Issuance Another key insight from Jiraaf's data is the overwhelming dominance of the private placement route in India's listed bond market. Over 95% of listed bond issuances are executed via private placements, where debt securities are offered directly to a select group of institutional or high-net-worth investors. This route offers issuers faster execution, reduced regulatory burden, and lower disclosure requirements compared to public offerings. In comparison, a public offer functions similarly to an IPO, inviting broader investor participation with higher compliance and disclosure norms mandated by SEBI. However, growth in public debt offerings remains muted, partly due to the procedural complexity and stringent regulatory framework. Recognising this, SEBI has initiated steps to ease compliance and disclosure norms for public debt offers, aiming to promote broader participation in the corporate bond market. What Lied Ahead: India's corporate bond market is poised for further evolution as regulators push for greater transparency and wider investor participation. While NBFCs are expected to remain the primary issuers, banks may gradually return to the market if interest rates stabilise. Meanwhile, the continued preference for private placements reflects both issuer convenience and investor demand for bespoke debt instruments. With the government and regulators working to deepen and diversify India's debt market, platforms like Jiraaf are helping retail and institutional investors navigate opportunities in corporate bonds, facilitating wider adoption beyond traditional fixed deposits and mutual funds.
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)
