Mutual funds forced to sell less liquid corporate bonds at high spreads

Indian money managers are dumping corporate bonds as they struggle to meet redemptions after the biggest-ever forced closure of funds in the country last month. Even higher-rated debt is under pressure. Notes issued by government-backed lenders Punjab National Bank, Andhra Bank and Canara Bank were traded in the past few days at the highest yields in over a year of at least 12.5%, data published on National Stock Exchange website show. Mutual funds struggling with redemptions were among the sellers, people familiar with the matter said.

Click here to read more