Bank of France head says conditions 'not met' for ECB intervention on French bonds
France's benchmark 10-year bond is nearing 5%, a level not seen since 2002, as doubts about the French government's ability to rein in spending grow.
The Supreme Court's recent verdict on YES Bank's additional tier-1 (AT1) bonds has brought significant relief to mutual funds, financial institutions, and retail investors who had previously written off any hope of recovery. The court upheld the Bombay High Court's 2023 order quashing the YES Bank administrator's decision to write down the AT1 bonds during the bank's 2020 reconstruction.
This has opened up the possibility of recovery for investors, with mutual funds like Nippon India Mutual Fund and Kotak Mahindra Mutual Fund halting fresh subscriptions in certain debt schemes to protect their investors. Franklin Templeton, on the other hand, took a different approach by creating a segregated portfolio for bondholders, ensuring that any recovery proceeds are distributed in proportion to their holdings.
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- SC verdict on YES Bank AT1 bonds brings relief for mutual funds, retail investors thehindubusinessline.com
