Emerging markets: India; Peru; Saudi Arabia; Russia

Politically correct about debt

The door is slowly opening on India’s debt markets. Foreign investors can now invest 100% of their Indian portfolios in corporate debt as against the 30% allowed previously. The market itself is booming with long-term debt worth rs55 billion ($1.54 billion) raised by Indian corporates in the past few months and fixed-income returns overtaking those of equities.

The excitement in the corporate sector has set analysts wondering whether India’s government bond market – accounting for 60% of total issuance – could also be ripe for reform.