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Indian bank bonds are on heat right now, and investors can’t invest enough
April 24, 2017
- State Bank of India’s perpetual notes — so called because they lack a fixed maturity date — are being hoarded and hunted by traders betting the nation’s biggest lender will buy them back within the next 10 weeks as it puts its capital structure in line with Basel regulations.
- “This is a very low-beta, low-risk, high-return trade,” Wong said in a London interview. “If I can put more money into it, I would.
- At yields of about 6 percent, they can be a good shock absorber in a portfolio as global rates go up.”
