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Offshore India Bond Fund to be Launched by HSBC Global Asset Management

Thursday, July 19, 2012

Offshore India Bond Fund is to be launched by HSBC Global Asset Management. The Company has planned to launch Offshore India Bond Fund over the next few months.

About Offshore India Bond Fund, Economic Times quotes a statement of Sridhar Chandrasekharan, chief executive, HSBC Global Asset Management, “Given the long term confidence, the credit, rates and currency considerations have made Indian fixed income attractive.”

Further he adds, “Helpful in this has been the ultra-low interest rate environment in much of the developed world, and also the steps taken to allow foreign investors to access the Indian fixed income market, although more needs to be done.”

It writes his statement, “A lot of other countries are also facing similar issues, even in the developed world, and hence investors will always look at relative value across a range of countries and the rating alone is not a make or break scenario of the investment case for them.”

ET online magazine writes about Offshore India Bond Fund, “according to offshore fund managers, higher interest rates are prompting funds to take a lighter view of a probable downrating (of India sovereign) by top rating agencies, asset managers said. Yield on India's 10-year benchmark bond is about 8.3%, which is higher then what crisis-hit countries in the Eurozone are paying investors. The 10-year UK gilts fetches 1.55% while the ten-year US treasury bonds yield 1.49%. Triple A-rated Indian corporate bonds yield about 9.3%.”

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