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Wary mutual funds still refuse to buy all but the safest debt

Wary mutual funds still refuse to buy all but the safest debt

Finance
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
RBI announces Rs 50,000 crore liquidity support to Mutual Funds

RBI announces Rs 50,000 crore liquidity support to Mutual Funds

Finance
The Reserve Bank of India on Monday announced Rs 50,000-crore liquidity support for mutual funds. Under the special liquidity facility scheme effective today, the RBI will conduct repo operations of 90 days tenor at the fixed repo rate. The facility will be on-tap and open-ended, and banks can submit their bids to avail funding on any day from Monday to Friday, RBI said. Funds availed under the scheme can be used by banks exclusively for meeting the liquidity requirements of MFs by extending loans, and undertaking outright purchase of and/or repos against the collateral of investment grade corporate bonds, commercial papers (CPs), debentures and certificates of Deposit (CDs) held by MFs. The central bank’s move has come following Franklin Templeton’s decision to close six debt funds and pu
The Fed is propping up money market funds. Here’s what that means for investors

The Fed is propping up money market funds. Here’s what that means for investors

Finance
If you have cash parked in a money market fund that invests in non-U.S. Treasury debt, the Federal Reserve says it's got your back.Late Wednesday, the Fed announced a new program that will make loans to financial institutions that buy shares in "prime" money market mutual funds, whose investments include corporate bonds. It's the latest move by the Fed to prop up the U.S. financial system as the fallout from the coronavirus pandemic continues to run roughshod over the economy. "The Fed is doing all it can to make sure the system's plumbing is working," said certified financial planner Mike Hennessy, founder and CEO of Harbor Crest Wealth Advisors in Fort Lauderdale, Florida.Traders work on the floor at the opening bell of the Dow Industrial Average at the New York Stock Exchange ...
Astronomers want public funds for intelligent life search

Astronomers want public funds for intelligent life search

Science
The head of one of the US's national observatories says the search for intelligent life elsewhere in the universe needs to be taken more seriously.Dr Anthony Beasley told the BBC that there should be greater government support for a field that has been shunned by government research funders for decades.His backing for the search for extra-terrestrial intelligence (Seti) marks a sea change in attitudes to a field regarded until recently as fringe science.Dr Beasley made his comments at the American Association for the Advancement of Science meeting in Seattle.The director of the US National Radio Astronomy Observatory in Charlottesville in Virginia said that it was now "time for Seti to come in from the cold and be properly integr...
YES Bank ropes in Anshu Jain, former Chief of Deutsche Bank, to raise funds

YES Bank ropes in Anshu Jain, former Chief of Deutsche Bank, to raise funds

Finance
Yes Bank, the fourth largest private bank of the India, is doing all it takes to raise capital. In its continuous efforts to raise funds, Yes Bank has given a mandate to Anshu Jain to raise the funds for the bank, sources close to the development told ETBFSI. Anshu Jain is a former co-CEO of Deutsche Bank , currently the president of Cantor Fitzgerald, an investment bank and brokerage firm. This development has come after Yes Bank has received approval from the board to raise $ 2 billion. Cantor Fitzgerald is a New York-based 85-year-old global financial services firm having its 32 offices across USA, Europe, Middle East and Asia Pacific. Prior to joining Cantor, Jain was heading the German giant Deutsche Bank as a co-CEO for three years. He was the highest-paid CEO at the bank and resig...