Indian Banks & Financials

Indian banks and financial issuers.

Indian banks and financial issuers offer a distinct corner of USD Asia credit, with the ten screened bonds spanning maturities from 2027 to 2030 and yields that compare favourably with other emergingmarket financials. The theme combines higheryielding finance company paper with more defensive bank exposure, giving investors a range of credit profiles within a single sector. Capri Global's 7.55% notes due December 2029 lead the screen at a 8.653% yieldtoworst, the highest in the group. Their pricing near 97 also adds modest upside if spreads tighten as the maturity approaches. IIFL Finance's 7.6% bonds due 2029 and 2030 yield 7.873% and 8.236% respectively, with B+ ratings that signal a clear step down in credit quality. The yield pickup over shorterdated paper makes the curve worth a closer look for investors seeking compensation for that added risk. Axis Bank's 6.875% issue, rated BB, yields 7.315% and anchors the loweryielding, higherquality end of the theme. It shows that Indian bank paper can still offer a meaningful spread over the finance company names.

Results are limited to USD bonds with an amount outstanding of at least USD 200MM.