India became an investor-darling overnight.
Foreign investors lap up Indian bonds
http://www.financialexpress.com/news/foreign-investors-lap-up-indian-bonds/1289138
Already, foreign portfolio investors have bought a record $18.6 billion worth of paper in the onshore Indian rupee debt market. “What it tells us is that four months after the new government has been in power, financial markets are confident that the government will deliver on its promises. Foreign investors have confidence that the government will facilitate an economic recovery," Dave told FE.
The price of purchasing protection from the credit risk of an Indian company has nearly halved since January with credit default swaps (CDS) falling as much as 150 basis points. ICICI Bank’s CDS spreads are at an over four-year low and those of other notable Indian issuers such as Exim Bank and State Bank of India are also at similar levels.
Ananth Narayan G, head of global markets at Standard Chartered Bank observed, “If you comapre Indian credit compared with that of other emerging market credit, India has certainly outperformed. The optimism after the elections has contributed to this.”
