The corporate bond market has grown substantially in the last few fiscals. However, the market continues to be dominated by AAA and AA-rated bond issuance, which account for 85% - 90% of the total issuance.

• A-rated companies heavily rely on bank financing which shows the significant opportunity for incremental issuance in this category. And since these companies belong to diverse sectors, it provides portfolio diversification benefits to investors.
• A well-diversified portfolio of A-rated companies can provide higher returns even after adjusting for credit risks.
• Mutual Fund investments in A category bonds have gone up by 5 times in the last five financial years