Riskiest firms in India struggle to sell debt after fund closure

Just when India’s weaker companies need money the most amid the coronavirus pandemic, demand for their bonds is drying up. Issuance of local-currency notes graded A+ and below fell to a nine-year low of 1.9 billion rupees ($26 million) in April. The spread on A rated three-year corporate bonds has jumped to a more than four-month high of 295 basis points. Sentiment is weakening after Franklin Templeton, which was a big buyer of high-yield Indian securities, shut six debt funds late last month.

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