SBI bonds create trading opportunities

Traders are hoarding and hunting SBI's perpetual notes by betting it will buy them back within 10 weeks

SBI bonds create trading opportunities

For all the hurdles faced by lenders, there are bank bonds out there that investors can't get enough of. State Bank of India’s (SBI’s) perpetual notes — so called because they lack a fixed maturity date — are being hoarded and hunted by traders betting the nation's biggest lender will buy them back within the next 10 weeks as it puts its capital structure in line with Basel regulations.

That’s created a trading opportunity for investors like Carl Wong of Nexus Investment Advisors and Raj Kothari of Jay Capital, who say SBI’s perpetual bonds are the only notes that have yet to be redeemed as part of the revamp. Lenders around the world have been scrabbling to redeem bonds issued before

First Published: Apr 21 2017 | 02:58 AM IST

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