Reported about 10 hours ago
India's newest infrastructure lender has significantly increased its hedging activities in the interest-rate derivatives market, helping to stabilize borrowing costs during a period of economic slowdown. This move has led to a decline in the five-year overnight index swap rate, despite rising U.S. Treasury yields, offering an unintended benefit to the Indian economy as concerns grow regarding its weakening growth. The National Bank for Financing Infrastructure and Development (NaBFID) has actively engaged in various swap transactions to mitigate interest rate risks, which may prove beneficial yet challenging for the central bank's inflation management efforts.
Source: YAHOO