From the Opinions Editor: The Indian debt market faces unresolved questions on risk pricing
Consider the scenario. Over the past year, while short-term interest rates have fallen, long-term central government bond yields have been almost flat. In contrast, borrowing costs for states have risen sharply. State governments are now, in fact, paying as much as AAA rated corporates. This, however, isn’t the only quirk. Home-loan borrowers are barely paying…