'Lower-rated bonds should be allowed in ARCL tri-party repo'

TO PROMOTE THE corporate bond repo market, regulators should allow mutual funds to participate in repos backed by lower-rated corporate bonds, and also raise their investment limits in corporate bonds for guaranteed

- CHRISTINA TITUS

repos, said Kashinath Katakdhond, managing director, AMC Repo Clearing (ARCL).

“Regulators should consider expanding the participant base in the corporate bond market, encouraging more investors to take higher risks and support issuers with lower-rated papers. While we aim to gradually include ratings below AA, at this nascent stage, we restrict to AA-rated instruments,” Katakdhond said.