$115 billion fund manager backs India's shortest maturity debt
ICICI Prudential, which manages $115 billion, is putting its money on ultra-short-term debt—basically, bonds that mature in two years or less. The company thinks the current economic slowdown is just a temporary dip and expects things to pick up soon. Manish Banthia, their Chief Investment Officer for Fixed Income, says this move is all about getting ready for better times ahead.
Bet on upside as economy rebounds
While most of their competitors are locking into longer-term bonds, ICICI Prudential is taking a different route and sticking to the short end. This approach follows recent rate cuts and cash boosts from the Reserve Bank of India (RBI), but Banthia points out that RBI can't keep easing forever. He explains that the recent rate cuts are positive but also indicate that the central bank's options are running out. Basically, they're hoping to catch the upside when growth bounces back—without getting stuck if things stay rocky.