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Journalism of Courage
War mongering and posturing seems to have claimed another casualty in addition to its already lengthy list. The latest in line is the corporate bond market.
Bankers say that quite a few corporates have put their borrowing programmes on hold for the moment keeping in mind the uncertainty prevailing in financial markets due to border tensions and the war of words.
Said a merchant banker: “There is too much fluctuation in the market and nobody wants to take a call on which way interest rates are going to move. As a merchant banker, there is no rate that I can assure when a corporate approaches me. Everybody is taking a look at the timing before going ahead. Some of the corporates taking a relook at the timing of their issues are GE Shipping, Sterlite and Forbes Gokak.
That is why some corporates have taken to short-term borrowings linked to Mibor. Once things become clearer, they will resort to longer term borrowing.”
