India’s Government-Owned Firms Pay A Hefty Price For Increased Borrowings

India’s government owned agencies and companies are paying a steep price for their borrowings, despite an implicit sovereign backing and low probability of default.While borrowings costs for all Indian companies have risen due to tight liquidity conditions and risk-aversion in the credit markets, the spread, or the additional cost over sovereign bond yields paid by government firms, has also widened, shows data analysed by BloombergQ...