India’s biggest asset manager is bolstering its cash holdings on bets the central bank will raise borrowing costs further, helping it deploy funds at higher yields.
SBI Funds Management Pvt. has been trimming the duration of its portfolio since May and wants to keep the cash handy for better investment opportunities as a sudden spike in inflation sparks debate on odds of more rate hikes. Yields on India’s benchmark 10-year bond are on a rise, advancing 26 basis points from their May low.
