Though there are no credit risks, there could be volatility due to interest rate movements
A sharp reduction in bond price (or rise in yield) is a signal to exercise caution.
On April 27 and 28, seven companies raised a total of only Rs 3,544 crore out of the targeted Rs 10,400 crore.
We continue to expect that the RBI will announce more measures in coming weeks, with the next round largely focusing on the bond market.
A higher YTM may look attractive. But it can come with higher risks.
The subscription dates for the first tranche is April 20-24 while the dates for the last tranche is August 31-September 04, the press release said.
As a general rule, debt instruments that are issued by the government or their extended arms will carry very low risk
The company had called a meeting of bondholders on April 6 seeking their nod for resolution of the outstanding USD 172 million bonds.
Markets will be wary of a fiscal slippage, and rightly so
Total write down of Yes Bank's additional tier-1 bonds will impact not only institutional investors, but also retail investors
The company had to refinance its $324 million debt maturing on March 13
In its draft resolution plan for Yes Bank, the Reserve Bank of India (RBI) said that any instruments qualifying as AT1 capital will be written down.
"The bank is proposing to raise capital by issue of Basel III-compliant unsecured, redeemable non-convertible tier II bonds of base issue of Rs 200 crore with green shoe option of Rs 400 crore aggregating to Rs 600 crore on private placement basis," the lender said in a regulatory filing.
"A meeting of board of directors of the company is scheduled to be held on Friday wherein the matter relating to raising of funds through issue of bonds/debentures (including tax-free bonds, capital gain bonds up to Rs 28,000 crore will be considered," Hudco said in a filing to BSE.
Even Wall Street turned south late on Thursday on reports of increased infections in Beijing, and as the virus spread in South Korea and Japan.
The end of the credit crisis in the bond market is unlikely despite the RBI’s measures
Airtel is among the few domestic companies, including Reliance and SBI, to issue perpetual bonds which do not prescribe a maturity date but can go up to 100 years.
The company has allotted rated, listed, secured, redeemable, non-convertible debentures on private placement basis for an issue size of Rs 500 crore, STFC said in a regulatory filing.
Experts are of the view that the move is a positive one as it will strengthen the segment of the corporate bonds.
The bids for the above issuance would be invited on electronic bidding platform (EBP) of BSE Bond and bidding window shall remain open on January 31, it said.
It makes sense to invest in credit risk funds now. Investors have shunned this space and the sentiment is very low
Rolling out new schemes without laying down how these would be funded and without elaborating on how they would be executed will not go down well with markets.
Look at the credit rating, goodwill of the business group issuing the instrument and post-tax returns
"The Company has decided to raise Rs 525 crore through private placement of Secured, Non-Cumulative, Non-Convertible, Redeemable, Taxable Bonds (Series I of 2020) in the nature of Debentures at a coupon of 7.36 per cent per annum with a door to door maturity of 10 years, as per the bidding process held on January 23, 2020," it said in a BSE filing.
"The funds raised will be primarily used for the purpose of onward lending and the repayment of interest and principal of existing borrowings of the company and for general corporate purposes," the NBFC arm of Edelweiss group said in a release.