Credence Family Office, Vivriti Asset Management Unveil SDI offering
Credence Family Office, on Monday, said that it has unveiled its inaugural securitised debt instrument (SDI) offering, in collaboration with Vivriti Asset Management.
Mitesh Shah, Founder and CEO at Credence Family Office, said, “Like equity, bond portfolios also need diversification for risk mitigation; but given that direct bonds come with minimum face value, it restricts the ability of an average investor to build a fully diversified bond portfolio. Democratisation and risk assessment of fixed income instruments, in the performing credit space, was an essential next step to fill the void left by mutual funds.”
SDIs are Sebi-regulated securitised debt instruments, backed by cash flows from underlying bonds or non-convertible debentures (NCDs). The underlying bonds and the SDI are separately rated by credit rating agencies.
SDIs are an addition to the overall demand-supply dynamics in the Indian debt market, particularly for mid-market enterprises (MMEs). The mutual funds segment remains largely elusive for MMEs, while banking capital has been finding more allocation to the retail segment.
Alternative investment funds as a pool of capital are finding decent traction in recent times, however higher ticket size of Rs one crore limits participation.
SDIs, with a lower minimum ticket size, provide alternate debt investment opportunities to an average investor on one side, which have so far largely been restricted to mutual funds, while simultaneously helping MMEs with an additional avenue for diversifying their resource profile.
