Global banks drive India’s asset-backed securities market to record highs

Golden Ten Data reported on June 22 that as global banks ramp up purchases to gain exposure to the market of one of the world's fastest-growing major economies, India's asset-backed securities market has soared to a historic high. Krishnan Sitaraman, Chief Ratings Officer at rating agency Crisil Ratings, stated that in the fiscal year ending March, the share of foreign banks in total bond issuance rose to approximately 35%, compared to 28% and 30% in the previous two fiscal years. Based on the total asset-backed bond issuance of 1.53 trillion rupees (about $16 billion) for that fiscal year, this means overseas lending institutions purchased about $5.6 billion worth of bonds. Sources familiar with the matter said several foreign banks, including Barclays, Citigroup, JPMorgan, and Standard Chartered, have increased their investment in these types of debts.