Trading interest in NBFC bonds
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.