Finalyst November 2013 Issue November 2013 | Page 4

FINALYST

NOVEMBER 2013

“Corporate bonds can be source of survival for corporate,
investors and governments ”
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Anonymous

Dear Readers,

In India, there have been huge developments in corporate debt market, be it bond market, asset/mortgage backed
securities or long term loans. India’s corporate debt to GDP is only 4% while the same for USA is 70%. However,
the ratio is far good for other countries. India, as an emerging country has still a long way to go when it comes to
corporate debt. We have numerous challenges viz. limited investors base (mainly institutional investors), predominance of banks in the financial sector, high costs of issuance and lack of transparency in trades. However, lots of
innovation is going on in debt market, specifically bonds. Cover story of November issue talks about Hybrid bonds
that have been started to cover the risk of defaults. In current scenario, there has been surge in investor confidence and it is further strengthened by the growing signs in Eurozone. Many investors are prepared to be patient
in return for premium yields, which is giving companies an option to extend maturities and increase leverage. Also rupee denominated bond has been launched to attract more investors towards India.
We bring for you the third issue of Finalyst on Corporate Debt for this academic year that promises to offer insights on a wide range of topics, in addition to new segments. The cover story talks about the corporate debt in
our country and compares it with corporate debt position of other countries. The winning article on the debt market is a fresh take on new banking licenses to be issued to various NBFCs.
We are sure that you will enjoy ‘FinCom’: our take on the economic and financial issues in a comic strip format.
Well, Federal Bank has lot been in news due to tapering in US and we definitely would want to know the next to
be chairman- Janet Yellen and therefore we have included a brief about her. The Quiz and FinWord are always
present to challenge your grey cells. The M& A segment (M&A/PE/VC/IPOs) talks about Mergers and Acquisition report of 2013 and gives insights on valuable deals that have taken place.
We thank our readers for their support in the form of entries for article writing and we hope you would continue
to do so in the future. Suggestions for improvement are welcome!

Happy Reading!
Finance Club Team, SCMHRD

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