Trad­ing in­ter­est in NBFC bonds

Business Standard - - THE SMART INVESTOR - SAMIE MODAK

Sec­ondary mar­ket trad­ing in cor­po­rate bonds listed on stock ex­changes is gain­ing trac­tion with the Na­tional Stock Ex­change (NSE) record­ing more than usual trades. Ac­cord­ing to mar­ket play­ers, the rea­son for the spike in in­vestors is a surge in yields on pa­pers be­long­ing to com­pa­nies such as De­wan Hous­ing Fi­nance (DHFL), Reliance Home Fi­nance (RHF) and In­di­a­b­ulls Hous­ing Fi­nance. Yields on cer­tain DHFL and RHF bonds quoted above 20 per cent last week. “The spike in yields sug­gests that the mar­ket is fear­ing a de­fault. How­ever, this is draw­ing some re­tail trad­ing in­ter­ests to­wards bonds. In­vestors need to be care­ful,” said a bro­ker.

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