Re: NHAI Issue - Tax Free Secured Redeemable Non-convertible bonds- Crisill AAA/Stabl
Bond Markets work in a very different manner than equities..... First of all, you need to have access to the Debt Market Segment of NSE..... which I doubt you have at present.... it's a different segment just like Cash, F&O, Currency Derivatives are different segments.....
I don't have any practical knowledge about Bonds..... but I have to study about them in my Academic Curriculum..... Have recently started that Chapter..... So, the following is based on whatever I have read till now.....
1. This is probably the best time to buy Bonds.... Why? Because the Interest Rates are at its peak..... You are going to get the best yields if you buy now.... As the Interest Rates drop, the Market Price of Bonds are going to rise providing you better yields.....
2. Coupon Rate is the worst indicator for the yield you are going to get.....
3. If you want to block the funds in Bond for 3.5-4years, then Buy the Bonds with Maturity of 5years..... Similarly, if you want to block the funds for 6-7yrs, buy the bonds with maturity of 10yrs.... In short, determine the period you wish to block the funds and then buy the Bonds which have a maturity more than that.... Let me know your Duration, I would suggest the maturity.....
PS: I have not gone thru the Brochure.... These are just based on whatever, I have read till now.....