Economy & FinanceLower Rated Bond Yields Compress As HNIs Get Their Hands Dirty
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.
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...