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A top India fund turns against riskier debt after Covid woes

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Covid-19 crisis on weaker borrowers is better understood.The level of stress in the economy especially for small- and medium-sized enterprises is still unclear after states locked down to curb the spread of a second virus wave from March, said Dhawal Dalal, who oversees $4.8 billion of debt assets at Edelweiss Mutual Fund.

Dalal, who manages one of the best-performing debt funds over the past year, has added only AAA rated corporate notes to his portfolio since March.“As the economy showed signs of recovering after the first Covid-19 wave, we had asked investors to start considering non-AAA corporate bonds" Dalal said in an interview last week.

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