New Delhi, Nov. 28 -- "If you wanna learn about supply and demand, go meditate in a forest," said Hendrith Vanlon Smith Jr, CEO of Mayflower-Plymouth. While this is certainly in a lighter vein, as far as Indian bonds go, there is certainly a gap between demand and supply that is going to skew figures in this asset class.

Here too, even in an apparently boring economic treatise, there is money to be made.

The core issue is that demand-side incentivisation for debt papers has been lacking. Regulatory changes have gradually nudged long-term investors such as Pension and Insurance funds to incrementally allocate more towards equity, says Rajeev Radhakrishnan, CFA, CIO- Fixed Income, SBI Mutual Fund.

Until recently, this demand-supply gap w...