InvestorQ : Which are the mutual funds that are most exposed to Yes Bank in terms of equity and in terms of debt holdings?
Debbie Mascarenhas made post

Which are the mutual funds that are most exposed to Yes Bank in terms of equity and in terms of debt holdings?

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Crowny Pinto answered.
10 months ago
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Nippon India Mutual Fund (formerly Reliance MF) has the highest exposure to the bonds of Yes Bank, which has already been placed under moratorium by the RBI. Nippon Fund had an exposure of Rs.1,806 crore to the bonds of Yes bank as on Jan-2020. Many of these are legacy purchases during the Reliance MF period. According to portfolio disclosures made by mutual funds, a total of 32 debt schemes across mutual funds had an exposure of Rs.2,848 crore in Yes Bank of which Rs.2,779 crore was exposure towards the perpetual bonds issued by Yes Bank. Most funds may look to either fully write off the exposures or they may look to side pocket the exposure. Advisors are suggesting that low risk investors could look to exiting these funds. However, there will be a loss since the debt is already marked down. In fact, post the ICRA downgrade, perpetual bonds of Yes Bank in various MF schemes were already marked down to 74% of value and now will be further lowered to 47%. In fact, Nippon Fund has already written down its Yes Bank exposure to zero.

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