Current NCD offers attractive: Experts
Given that the 10-year benchmark is trading at 7.3 per cent, investors get 200 basis points (2 percentage points) on an AAA-rated paper of Mahindra Financial, and about 240 basis points higher in Shriram Transport, which is a good opportunity for investors.
MFs stare at M2M losses after Icra cuts Yes bank rating
As per regulatory guidelines, interest on the perpetual bonds will be paid out of net profit for the current year. Banks can use revenue reserves to pay interest, in case there is a shortfall, subject to RBI guidelines.
What triggered higher rates in NBFC deposits?
Post IL&FS rating downgrade, all NBFCs are resorting to all avenues to raise funds. Corporate deposits are one of them, as companies are trying to offer additional higher rates than bank fixed deposits.
Credit crisis hits NCDs of NBFCs, yields jump as much as 400 bps
Despite yields shooting up, the demand for these NCDs has shrunk.
Safety is a priority for investors in this environment. They will opt for only companies where there is comfort.
Investors in debt mutual funds may do well to keep horizon short
As current account deficit widens due to higher oil prices, interest rates are expected to move further up. The 10-year benchmark could trade between 8.20 and 8.35% in the next three months.
Fixed maturity plan or short-term bond fund — what should fixed income investor choose?
Short-term bond yields are attractive and most of these bonds charge low expense ratios. As they are open-ended schemes, you can sell out if need be. That makes short-term bond funds a lucrative investment option.
Raining retail bonds: Should you invest?
Last two years, none of the debt mutual fund schemes have performed up to the mark. Investors have switched to retail bonds as they seek to earn higher interest income regularly.
Rising corporate deposit rates likely to move further up
More non-banking finance companies are likely to come with higher rates as they jostle to tap the retail money.This will also help those companies to expand retail reach, a key business driver for them.
Shriram Transport targets Rs 5000 crore via bonds
Retail bonds are coming back to the market with investors showing encouraging response to quality papers. Shriram sounds a credible name among retail investors who have already tasted its corporate fixed deposits with no default record.
Rates rising, investors dump income funds for FDs, bonds
Performance is dismal for income funds in the past one year. The value erosion is higher as these funds invest heavily in long maturity papers, which bled in past months.