The Death Of Debt In Money Market

Most tragedies have a common trait – someone always dies at the end. A tragedy of sorts is being played out in the debt market even as you read this. The concept of generating sufficient yield from debt is quite nearly moribund these days. The state of affairs there stands in stark contrast to the robust performance being delivered by equity at this very moment. To most investors, debt now makes a compelling alliteration: ignoble, irrational and inconsequential. The latest stance of the Reserve Bank of India, as expressed in its recent policy, is to maintain status quo on interest rates. The central bank’s accommodative view, generally in keeping with the market’s expectations, brings no specific succour insofar as debt investors are concerned. For them, the overall fixed-income environment appears gloomy as returns are likely to remain under considerable pressure in...