HNIs, family offices buy corporate bonds at high yields, reap benefits

The yields of some prominent companies are still at very high levels and high net-worth individuals and family offices, who are lapping up these bonds at very attractive rates, are reaping the benefit

Bond market liquidity may have seen substantial improvement thanks to the efforts of the Centre and Reserve Bank of India (RBI), but it is not synonymous with a revival in risk appetite, especially when it comes to non-banking financial companies (NBFCs).

Yields of some good-name companies are still reigning high. However, the ones making hay are the high net-worth individuals (HNIs) and family offices, who are lapping up these bonds at very attractive rates. Most of these bonds are set to mature in a year or within three.

The disruption in public markets for bonds, on the back of redemption