NaBFID plans credit default swap product for infra bonds

In Sept, it had launched a partial credit enhancement product for low-rated debt instruments

- CHRISTINA TITUS

THE NATIONAL BANK for Financing Infrastructure and Development (NaBFID) is planning to come out with a credit default swap (CDS) product for infrastructure bonds. The move intends to bolster and expand the corporate bond market.

"We are working to launch CDS product for infra bonds. With CDS, we aim to develop corporate bond market at a large scale. We have started preliminary work and it is still in an early stage," a senior official said. It is also expected to help increase participation in low-rated bonds, giving more confidence to investors.