We are adding this secured, listed NCD with attractive yields that compensate for the risk which is also mitigated by other factors.
It’s raining high-yield NCDs and this article gives you a framework to filter these to arrive at the best candidates for your portfolio.
This NCD has three tenors and yields offer a good spread over both government and AAA-rated corporate debt.
Odd lots, subordinate bonds, waterfall mechanisms – understand these and other bond market terms
This secured, listed and redeemable NCD is issued by India’s 5th largest microfinance company
With better credit offtake and improving upgrades in credit rating, at PrimeInvestor, we think it may be time to selectively take calls on bonds that compensate well for the risk taken. In this report we cover one such privately placed bond.
At PrimeInvestor, we took an ultra-conservative approach to debt investments during Covid and just after it. But with economic recovery taking root, interest rates rising and credit offtake improving, we believe investors can shoot for higher yields by taking on some credit risk. Perpetual bonds from banks with sound financials are one option, offering good reward for risks taken. We are covering one such bond here.
Whenever we recommend SDLs, our readers raise many queries like “Are SDLs safe?” and more about the difficulty of choosing them. In this FAQ, we try and address all of your niggling doubts about SDLs.
Lately, it is not just India’s stock market that has been hopping all over the place like an impatient child. The bond market has been doing it too! India’s 10-year government bond yield, which sets the benchmark for all other debt instruments, climbed vertically from 5.8% in July 2020 to 7.61% in June 2022. But after that, it has been unable to make up its mind on whether to climb higher or pause for breath.
It is true that debt funds have been a washout in the past 3 years. For an investment of 1-2 years, FDs would have marginally (although not significantly enough) returned higher than liquid and ultra short duration funds.
Eighteen months ago, it would have been difficult to imagine that there would be a time when debt investors in India would be spoilt for choice. But the sharp rise in market interest rates in India in the past year or so, has led to this happy situation. Between December 2020 and now, yields on …
Prime Strategy: Time to lock into high yields and how Read More »
Market yields on government bonds have been rising quite sharply in recent months, with short-term yields rising to narrow the gap with long-term yields. However, for investors with surpluses to invest for 2-3 years, the options are still somewhat limited.
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