India expands foreign access to booming credit market
India's financial regulator has given global banks like HSBC and Standard Chartered the go-ahead to offer "total return swaps" (TRS) on corporate bonds.
This means foreign investors can now access India's massive $639 billion corporate debt market—not just government bonds—at a time when private credit deals are booming.
How TRS works
TRS lets foreign investors benefit from Indian corporate bonds without actually owning them or opening local accounts.
Since India joined global bond indexes, over $22 billion has already flowed into the nation's sovereign debt, but not specifically through TRS.
Big deals, like Shapoorji Pallonji Group's $3.4 billion financing this year, show how fast private credit is growing.
Regulators are also looking at letting TRS work with dollar bonds
This move fits with recent rule changes making it easier for foreigners to invest in Indian bonds.
Regulators are also looking at letting TRS work with dollar bonds issued in GIFT City—a step that could attract even more global interest.
Investors say they're seeing higher volumes already, hinting at big things ahead for India's credit scene.