fixed income group
A Government Security(G-Sec) is a tradeable instrument issued by the Central Government or the State Governments. It acknowledges the Government’s debt obligation. G-Secs carry practically no risk of default, and hence called risk-free-gilt-edged instruments.
State Development Loans
State Governments raise loans from the market which are called SDLs. SDLs are dated securities issued through normal auction similar to the auctions conducted for dated securities issued by the Central Government. Interest is serviced at half-yearly intervals and the principal is repaid on the maturity date.
Treasury Bills or T-bills, which are money market instruments, are short term debt instruments issued by the Government of India and are presently issued in three tenors, namely 91 days, 182 days and 364 days. Treasury Bills are zero coupon securities and pay no interest. Instead, they are issued at a discount and redeemed at the face value at maturity.
Certificate of Deposits
A Certificate of Deposit (CD) is a short-term security with a fixed interest rate and maturity date issued by a Bank that seeks to raise funds from the secondary money market.
Corporate Bonds are debt securities issued by private and public corporations. Companies issue corporate bonds to raise money for a variety of purposes. When one buys a corporate bond, one lends money to the “issuer”, the company that issued the bond. In exchange, the company promises to return the money, also known as principal.
Tax Free Bonds
Tax-free bonds are issued by government enterprises. They offer a fixed interest rate and hence is a low-risk investment avenue. As the name suggests, its most attractive feature is its absolute tax exemption as per Section 10 of the Income Tax Act of India, 1961. NRIs can invest in NRI-eligible tax-free bonds.
10.15% UPPCL 2028
A series of Uttar Pradesh Government Guaranteed Bonds from maturities ranging from 2021 to 2028
10.25% STFC 2024
Shriram Transport Finance Company Limited’s Bond with a Monthly Interest Payment for retail investors.
11.95% Karur Vysya Bank 2029
A fast-selling Bank Perpetual Bond with a lower Face Value, a go-to for a retail investor!
9.48% PNB Housing Finance Limited 2024
PNB Housing’s latest rating upgrade has caused retail investors to heavily invest in this secured bond trading at a discount!
13.75% South Indian Bank 2025
For the savvy investor with a higher risk appetite can invest in this AT1 Bank Perpetual which has a lower Face Value
7.75% PFC 2030
For a secured bet, retail investors can invest in Power Finance Corporation’s AAA-rated secured PSU bonds
Things to consider before closing a deal with a Bond Desk Ensure you have a Net Banking limit equal to the amount you wish to invest in Bonds Add Beneficiary Beneficiary Name: Indian Clearing Corporation LimitedBeneficiary Account Number: 8715962Beneficiary Account Type: Current AccountBank Name: Reserve Bank of IndiaBranch: Fort, MumbaiIFSC Code: ICLL0000001 Please use theAugust 4, 2020
No one anticipates these times. We are all in it together! We want to reach out with some perspective and guidance on your personal finances. Don’t let stress short-circuit your decisions Stress often leads us to feel very action-oriented. We skip over the thinking and feeling and get right to doing. We encourage you, asAugust 4, 2020
List of Trading Holidays for Calendar Year 2020 – Indian Debt MarketApril 13, 2020
Corporations seek new financing for a variety of reasons, including the need to increase working capital, repay debts, purchase fixed assets or other companies, or repurchase the firm’s own shares. Companies considering a new issue must also consider the following decisions:» The types of securities to be issued » The timing in bringing the issueMarch 27, 2020