ADVERTISEMENT

Lower Rated Bond Yields Compress As HNIs Get Their Hands Dirty

With family offices and high net worth individuals becoming big participants in the bond market, access to capital is becoming easier and that's why spreads are narrowing, experts said.

<div class="paragraphs"><p>As of October, the spread over five-year BBB rated corporate bonds have tightened approximately by 25-50 basis points. (Photo source: Envato)</p></div>
As of October, the spread over five-year BBB rated corporate bonds have tightened approximately by 25-50 basis points. (Photo source: Envato)
Rates on lower rated corporate bonds have tightened over a year as demand from wealthy clients has made access to capital easier for such companies, three people in the know told NDTV Profit.As of October, the spread over five-year BBB rated corporate bonds have tightened approximately by 25-50 basis points, against AAA rated papers of the same maturity that have squeezed by 5-6 bps, according to National Securities Depository Ltd. d...
To continue reading this story
Subscribe to Unlock & Enjoy your 
Subscriber-Only
 benefits

Choose a plan

Renews automatically. Cancel anytime.
Still Not convinced ? Know More