Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Highly experienced ex-Delta One trader with 17 years of experience trading arbitrage and related strategies across Asian markets.

Exempt Financial Adviser (EFA) under CrossASEAN Research Pte Ltd.

It is important to note that the information provided by Periscope Analytics is based on publicly available data and own knowledge, which has been gathered and synthesized from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions.

All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include, but are not limited to, company announcements, exchange filings, ETF and other passive investment vehicle holdings, and free float and volume data from third-party data providers. Periscope Analytics does not guarantee the accuracy and completeness of the forecasts, estimates and/or other information.

Pan-Asia Index Rebalances/ Events/ Delta One

Thematic (Sector/Industry)

India Financials / Thematic (Sector/Industry)

With large parts of India still in lockdown, there have been apprehensions that there could be an increase in corporate defaults, especially from lower rated companies. Consequently, there has been a drop in liquidity in the corporate bond markets and increased redemptions from fixed income mutual fund schemes.A few hours ago, Franklin Templeton Mutual Fund announced its decision to wind up six schemes in its managed credit funds due to a dramatic and sustained drop in liquidity in the corporate bond market accompanied by continuous and heightened redemptions. All redemptions will be halted and investors will be paid off of proportionally and in a staggered manner as the underlying securities are sold, bonds mature, and coupons are received.Net assets in the six schemes amount to INR 308.5bn (US$4.07bn). The event will have far reaching implications for the Indian markets and the Mutual Fund industry.RBI's Targeted Long Term Repo Operation (TLTRO) 2.0 that is aimed at providing liquidity to small and mid sized Non Banking Financial Companies and Microfinance Institutions saw a bid to cover ratio of 0.5 yesterday with limited participation by banks, further highlighting a reluctance to lend in the current economic situation.

With large parts of India still in lockdown, there have been apprehensions that there could be an increase in corporate defaults, especially from lower rated companies. Consequently, there has been a drop in liquidity in the corporate bond markets and increased redemptions from fixed income mutual fund schemes.A few hours ago, Franklin Templeton Mutual Fund announced its decision to wind up six schemes in its managed credit funds due to a dramatic and sustained drop in liquidity in the corporate bond market accompanied by continuous and heightened redemptions. All redemptions will be halted and investors will be paid off of proportionally and in a staggered manner as the underlying securities are sold, bonds mature, and coupons are received.Net assets in the six schemes amount to INR 308.5bn (US$4.07bn). The event will have far reaching implications for the Indian markets and the Mutual Fund industry.RBI's Targeted Long Term Repo Operation (TLTRO) 2.0 that is aimed at providing liquidity to small and mid sized Non Banking Financial Companies and Microfinance Institutions saw a bid to cover ratio of 0.5 yesterday with limited participation by banks, further highlighting a reluctance to lend in the current economic situation.

Mahindra & Mahindra Fin Services Ltd. (MMFS IN)

Nippon Life India Asset Management (NAM IN)

HDFC Asset Management Co Ltd (HDFCAMC IN)

India's Bear Stearns Moment