Advisors push AT1 bonds to HNIs to take advantage of surge in yields

Yields of perpetual bonds issued by State Bank of India and Bank of Baroda, for instance, have gone up by as much as 80-90 basis points (bps), and top recommendation lists of most managers

Wealth managers are advising their rich clients to buy additional tier 1 (AT1), or perpetual bonds, from the secondary market to take advantage of the surge in yields over the past few days.

Yields of perpetual bonds issued by State Bank of India (SBI) and Bank of Baroda (BoB), for instance, have gone up by as much as 80-90 basis points (bps), and top recommendation lists of most managers.

Yields for HDFC Bank bonds, with a call option in 2022, hardened by 100-120 bps on Wednesday and were trading at 6.75 per cent. Not much trades have been seen in private banks,