Reported 1 day ago
Indian insurance companies are advocating for the government to issue new sovereign debt instruments, particularly zero-coupon bonds, to enhance their investment opportunities and better manage long-term liabilities. Discussions have been held with the Reserve Bank of India and the Finance Ministry, with insurers interested in 20- and 30-year bonds. Zero-coupon bonds would allow insurers to avoid periodic payouts, thus reducing interest rate and reinvestment risks, although issuing these could present accounting challenges for the government.
Source: YAHOO