Mumbai: India’s market for structured finance products more than doubled last year to $14.6 billion (Rs58,838 crore), Moody’s Investors Service said. Sales of collateralized loan obligations and asset-backed securities led the growth in India, where the instruments were not as complex as in more developed markets, a report said. In 2006, $6.7 billion of structured finance products were sold.
“The vigorous growth of 2007 was dominated by numerous small deals, each averaging $37 million, slightly below the $41 million of 2006,” Dominique Gribot-Carroz of Moody’s and Kalpesh Gada of Icra Ltd, Moody’s Indian associate, said in the report.
India’s gains contrasted with more developed economies where markets shrank because of losses linked to the US subprime crisis. So far, 45 of the biggest banks and securities firms have written down or lost $181 billion related to subprime-mortgage investments.