Britain's borrowing has soared to a record £103.7bn as debt outstripped economic output for the first time in nearly six decades due to the coronavirus pandemic.The figure for the first two months of the financial year is £87bn more than the same time last year - and the highest seen in any April-May period since current records began in 1993. It further lays bare the cost to the nation's finances of the COVID-19 crisis, as the Treasury receives less tax income while pouring money into efforts to prop up struggling businesses and safeguard jobs, impacted by the coronavirus pandemic.The Office for Budget Responsibility (OBR) had previously forecast that borrowing for the entire year was expected to hit £298.4bn. According to the Office for National Statistics, borr
By Subhadip SircarMoney managers in India have become so concerned about credit risk that even guarantees from policymakers for lower-rated debt is failing to entice them. Sentiment soured after Franklin Templeton, a big buyer of high-yield Indian notes, shut six debt funds in April. And this week, the market regulator allowed some bond funds to hold more government paper and treasury bills, underlining the flight to safety triggered by Franklin’s shock decision. “We continue focusing on quality within fixed income,” said Suyash Choudhary, head of fixed income at IDFC Asset Management in Mumbai. “A big part of this is due to drivers like lack of adequate liquidity and price discovery” in lower-rated papers, he said. Finance Minister Nirmala Sitharaman earlier this month announced a 300 bil
How big is the Franklin Templeton Mutual fund and why is it in the news now?Franklin Templeton Mutual Fund is the 9th largest mutual fund house in India and manages assets worth ₹1.16 lakh crore. Late Thursday, it announced winding up six of its debt mutual fund schemes with immediate effect – from Friday. The current lockdown on account of the pandemic has led to risk aversion among investors and there are no takers for lower rated and unrated paper. So, when an investor redeems, the fund house ends up selling good quality liquid paper increasing concentration risk in the scheme, which is not in the interest of remaining unitholders. Looking at this scenario, FT has decided to wind up these six schemes. Which are the six funds that FT has wound up? The six funds are Franklin Low Duration,
Rep Ilhan Omar (D-MN) takes part in a discussion on "Impacts of Phobia in Our Civic and Political Discourse" during the Muslim Caucus Education Collective's conference in Washington, July 23, 2019.Kevin Lamarque | ReutersDemocratic Reps. Ilhan Omar of Minnesota and Ayanna Pressley of Massachusetts introduced legislation on Monday that would suspend student loan payments and forgive $ 30,000 in debt for borrowers during the coronavirus outbreak. The bill, called the Student Debt Relief Act, would also prevent the government from seizing the wages and Social Security checks of defaulted borrowers. There are now dozens of members of Congress who believe the global health crisis, and the way it has brought the economy to a near halt, has made student debt cancellation necessary. ...
Mutual fund investors will likely see the net asset values (NAVs) of their investments drop in schemes that hold Yes Bank’s debt after the central bank imposed operational curbs, capping withdrawals to prevent a run on the stressed lender. As per data from Rupeevest, 32 mutual fund schemes cumulatively hold debt worth Rs 2,848 crore in Yes Bank as of January 2020. The largest holder, Nippon India Mutual Fund, has six schemes that cumulatively hold paper worth Rs 1,806 crore. In addition to this, four schemes of Franklin Templeton cumulatively hold paper worth Rs 475 crore, and six schemes of UTI MF hold paper worth Rs 365 crore. The largest exposure of Rs 637.8 crore is in Nippon India Equity Hybrid Fund, which accounts for 8.11% of its portfolio, and that caused the NAV to slip 9.48%, Nip