Ever since we started our coverage of FD products at PrimeInvestor, we’ve taken a very conservative approach to the entities whose deposits we recommend. Always putting capital safety over rates, our recommended list of FDs has been made up mainly of post office schemes, systemically important banks and very select NBFCs.
Home loans are one of the safer lending avenues for NBFCs, given that they are backed by collateral that usually appreciates in price. But does that make bond offers from two housing finance NBFCs – Piramal Capital and Housing Finance and IIFL Housing – less risky to bet on? Here’s our analysis.
The onset of the second wave of Covid has put long-term debt investors in India in a Trishanku-like situation (Trishanku was a king in Hindu
POWERGRID Infrastructure Investment Trust (PGInvIT) is the third InvIT and the second in the power transmission space (the other being IndiGrid InvIT) to be listed in the Indian stock markets. It is sponsored by listed PSU Power Grid Corporation of India (PGCIL and henceforth called the Sponsor).
Please find an explanation of what an InviT is here. This article will give you only our quick take on the offer and whether it is suitable for you. It is not a deep dive into the InvIT’s business and financials.
IndiaGrid Invit is making a Rs 1,000 crore public issue of secured redeemable Non-Convertible Debentures (NCDs) from April 28 2021 to April 30 2021 to
Suddenly everyone’s talking about US bond yields surging. I see that the 10-year US government security is up by some 0.02 % to 1.57%. Why is this such a big deal?
While yesterday’s move isn’t big, what’s big is the US 10-year Treasury’s 43 basis point rise in the last one month. This means that, a month ago, investors in long term bonds issued by the US government were getting 1.13% by way of interest and now they’re getting 1.57%. That’s a 40% jump in returns from an asset that is regarded as one of the safest parking grounds for money in the world.
With bank deposit rates plumbing the depths, fixed income investors are hard-pressed to find investment options that can deliver better returns without big risks. Power Finance Corporation’s (PFC) retail offer of secured non-convertible debentures (NCDs) appears well-timed to capitalise on this need. But should you bite the bait? If yes, which of the 7 bond options is worth a look? An analysis.
Forecasting is a tricky business and 2020 showed how Black Swans flying at you out of nowhere can make you look foolish. But looking back at the debt outlook and strategy we recommended a year ago, we’re glad we erred on the side of caution.
If you decide to park a portion of your deposit portfolio in riskier bank fixed deposit options after fully calculating the risks that can play out, that’s certainly a valid decision. But before you take that call, it is important to know how bank failures actually play out in India.
Covid or no Covid, stock markets in the last six months have been quite kind to equity investors. But debt investors have had no such luck. Even though India’s Monetary Policy Committee (MPC) has been in pause mode since June after slashing its repo rate from 5.4% to 4% in the preceding eight months, the returns that savers get on their bank and corporate FDs, bonds and debt funds have continued to plumb new depths.
The Monetary Policy Committee (MPC) in its latest meeting has sent out mixed signals about the future direction of interest rates. Citing an uncertain inflation outlook, it called a pause to its repo rate cuts, holding the rate at 4 per cent. At the same time, it also promised to continue its ‘accommodative stance’ due to unprecedented Covid stress on the economy.
The NFO of the latest tranche of the Bharat Bond ETF – a portfolio of high-quality PSU bonds from the Edelweiss AMC – will be open from July 14-17, 2020.
The purpose of these disclosures is to provide essential information about the Research Services in a manner to assist and enable the prospective client/client in making an informed decision for engaging in Research services before onboarding. History, Present business and Background: PrimeInvestor Financial Research Private Limited is registered with SEBI as Research Analyst with registration no. INH200008653. The Research Analyst got its registration on August 19, 2021 and is engaged in offering research and recommendation services. Terms and conditions of Research Services: The Research Services will be limited to providing independent research recommendation and shall not be involved in any advisory or portfolio allocation services. The Research Analyst never guarantees the returns on the recommendation provided. Investor shall take note that Investment/trading in stocks/Index or other securities is always subject to market risk. Past performance is never a guarantee of same future results. The Research Analyst shall not be responsible for any loss to the Investors. Disciplinary history: There are no pending material litigations or legal proceedings against the Research Analyst. As on date, no penalties / directions have been issued by SEBI under the SEBI Act or Regulations made there under against the Research Analyst relating to Research Analyst services. Details of its associates: No associates. Disclosures with respect to Research and Recommendations Services: The Research Analyst or its directors or any of its officer/employee does not trade in securities which are subject matter of recommendation. There are no actual or potential conflicts of interest arising from any connection to or association with any issuer of products/ securities, including any material information or facts that might compromise its objectivity or independence in the carrying on of Research Analyst services. Such conflict of interest shall be disclosed to the client as and when they arise. Research Analyst or its directors or its employee or its associates have not received any compensation from the company which is subject matter of recommendation. Research Analyst or its directors or its employee or its associates have not managed or co-managed the public offering of any company. Research Analyst or its directors or its employee or its associates have not received any compensation for investment banking or merchant banking of brokerage services from the subject company. Research Analyst or its directors or its employee or its associates have not received any compensation for products or services other than above from the subject company. Research Analyst or its directors or its employee or its associates have not received any compensation or other benefits from the Subject Company or 3rd party in connection with the research report/ recommendation. The subject company was not a client of Research Analyst or its directors or its employee or its associates during twelve months preceding the date of recommendation services provided. Research Analysts or its directors or its employee or its associates has not served as an officer, director or employee of the subject company. Research Analysts has not been engaged in market making activity of the subject company.
Full disclosures and disclaimers
Compliance Officer Details: Name: Srikanth Meenakshi; Email: contact@primeinvestor.
Grievance Officer Details: Name: Srikanth Meenakshi; Email: contact@primeinvestor.
