India Inc heads abroad in search of cheap funding

Risk appetite for emerging market issuers is returning.

For example, ICICI Bank's liquid five-year credit default swaps (CDS), which touched a record high of about 1,700 bps in October 2008, have narrowed to around 290 bps .

This means an investor would need to pay $300,000 annually to insure against a default of $10 million on underlying debt issued by India's largest private sector lender.