Accrual strategies making a comeback in fixed income as deleveraged corporate balance sheets open up credit opportunities: Nachiket Naik

Accrual strategies are gaining traction in India’s fixed income market as investors prioritize credit opportunities amid stable bond yields and improved corporate credit quality. Experts suggest a balanced approach, incorporating medium-term accrual, shorter-end liquidity, and potentially exploring options like InVits and Performing Credit AIFs. While global uncertainties persist, Indian bond yields are expected to remain rangebound.