A Top Indian Debt Fund Is Raising Bets on Riskier Company Bonds
- Lower-rated firms are looking more attractive: Nippon India
- Credit ratings will improve further in 18-24 months: Tripathi
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One of India’s top fund managers is turning bullish on bonds of riskier companies, as an accelerating economic recovery is giving a particular boost to the financial health of such businesses.
“Lower-rated companies that have not only survived but also improved their operational and financial metrics in the downturn make for an attractive investment proposition now,” said Amit Tripathi, who oversees about $15 billion of debt assets at Nippon India Mutual Fund. Such firms will gain most from an upturn in Asia’s third-largest economy, he said.