Kotak MF suspends subscriptions in two debt funds holding Yes Bank AT1 bonds
Yes Bank left its position unchanged in a mutual funds development.
· Economic Times Markets
In a move aimed at protecting investors, Kotak Mahindra Asset Management Company has put a temporary hold on subscriptions for two of its mutual fund schemes. This decision follows the zero valuation of Yes Bank AT1 bonds after a significant bank reconstruction in March 2020.
The analysis
Against that, the stock is -2.0% on the day at ₹17.76, and has returned -23.2% over three months. It sits 30% below its 52-week high, which means a good deal of bad news was already in the price. The banks sector has moved -4.0% over the same period, so Yes Bank is running 19.2 points behind its peers.
For Yes Bank, the question is how much of this is already reflected in the price and how much re-rates the banks peer set alongside it.
Why it matters
- Fund flows and NAV moves show where domestic retail conviction is actually going, month after month.
Market context
- The company directly in focus is YESBANK.
- Sector exposure: Banks.
In this story
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