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Indian bank bonds to underperform on potential sovereign downgrade

June 13, 2012  


From Chien Mi Wong

India bank bonds will remain lacklustre upon sovereign credit rating downgrade as the sector’s yields are anticipated to widen due to increase in risk in the medium term.

The fact that a sovereign rating downgrade remains a possibility for India reduces the appeal of its bank bonds.

The yields of Indian financial institutions’ bonds are expected to widen by at least 100 basis points (bp) to 150bp if...


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SOUTHEAST ASIA DCM

Rank Bookrunner Parents Deal Value $ (Proceeds) (m) No. %share 2012 YTD Rank
1 HSBC 4,160 38 8.3 2
2 Standard Chartered Bank 4,110 36 8.2 3
3 Goldman Sachs 3,666 3 7.3 5
4 Deutsche Bank 3,354 15 6.7 8
5 Citi 2,774 9 5.5 7
6 DBS 2,341 28 4.6 1
7 JPMorgan 2,288 7 4.5 4
8 CIMB Group 2,095 39 4.2 10
9 Siam Commercial Bank 1,835 16 3.6 22
10 RHB Capital Bhd 1,688 24 3.4 15
Subtotal 28,311 161 56.2
Total 50,423 249 100.0



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