Covered Bond Volumes To Pick-Up Gradually With Better Stakeholder Awareness: ICRA

Indian 50 rupee, left, and 2000 rupee banknotes. (Photographer: Brent Lewin/Bloomberg)

Covered Bond Volumes To Pick-Up Gradually With Better Stakeholder Awareness: ICRA


BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICRA Research Report

The domestic covered bond market, an alternate fund-raising avenue, saw a healthy uptick in volumes during H2 FY2021 due to dual recourse benefit available (viz. on the entity and the cover pool).

Covered bonds backed by pool of gold loans and vehicle loans found favour with investors, primarily due to secured nature of the underlying loans.

The structure has largely found interest among A-category rated issuers who are able to gain a distinct advantage by moving in AA or AAA rating categories through lower interest rates and diversification of investor base.

We expect covered bond volumes to pick-up gradually with better stakeholder awareness.

Click on the attachment to read the full report:

ICRA Covered bond Thematic.pdf


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