India’s insurance companies are ready to embrace bond forwards agreements that start trading on Friday, the latest step to enhance the liquidity and sophistication of the nation’s $1.3 trillion government debt market.
Insurance companies are in talks with the authorities to convert about 3.5 trillion rupees ($41 billion) worth of rates derivative contracts into bond forwards, people familiar with the matter said. Such contracts offer investors the opportunity to own the securities, rather than just receiving a cash settlement, giving insurers greater certainty in managing interest rate risks.
A key point of discussion between insurers and regulators is the ...
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