Investors take a fancy to market-linked debentures returns
An MLD is a type of debenture that does not pay any coupon before maturity.
Synopsis Wealthy investors are now looking short term as the interest rate cycle will likely turn after 12-18 months, said Ajay Manglunia, head of debt capital market at JM Financial. “MLDs are gaining popularity in this environment as the absolute returns would be rewarding after factoring in the long-term capital gain tax.
MUMBAI: Debt returns have been rather depressed, with rates plunging to record lows. So, how does one earn more from this asset class – at least more than the headline inflation rate? One way to do this is to buy into MLDs (market-linked debentures), now offered by the likes of Piramal Finance or Shriram Transport Finance.
Investors take a fancy to market-linked debentures returns
An MLD is a type of debenture that does not pay any coupon before maturity.
Synopsis Wealthy investors are now looking short term as the interest rate cycle will likely turn after 12-18 months, said Ajay Manglunia, head of debt capital market at JM Financial. “MLDs are gaining popularity in this environment as the absolute returns would be rewarding after factoring in the long-term capital gain tax.
MUMBAI: Debt returns have been rather depressed, with rates plunging to record lows. So, how does one earn more from this asset class – at least more than the headline inflation rate? One way to do this is to buy into MLDs (market-linked debentures), now offered by the likes of Piramal Finance or Shriram Transport Finance.
Piramal Capital to raise up to Rs 3,000 crore before DHFL merger
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Piramal Capital to raise up to Rs 3,000 crore before DHFL merger
Mayur Shetty / TNN / Updated: Mar 17, 2021, 11:12 IST
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(Representative image)
MUMBAI: Piramal Capital & Housing Finance is raising up to Rs 3,000 crore through an issue of bonds offering interest at 9.25% per annum. The issue comes at a time when the company has proposed to merge troubled home loan provider Dewan Housing Finance (DHFL) with itself.
The bonds are rated AA by CARE agency and come with the assurance that, should the rating fall by even one notch to AA-, the coupon rate would stand increased by 0.50%. For every notch of rating downgrade thereafter, the coupon would be increased by 0.50% per notch. If the long-term credit rating of the non-convertible debentures (NCDs) is downgraded to A- or below, the holders would reserve the right to recall the outstanding principal amount.
Anuradha Agnihotri, Trilegal
A dispute resolution expert, Agnihotri has been a part of the legal sector for 14 years. She has extensive experience in international commercial and domestic arbitrations and litigation across courts and tribunals in India.
She regularly handles matters involving shareholder disputes, investment disputes, construction projects and a variety of cutting-edge commercial issues.
Agnihotri has also been working on technology disputes as well as with the TMT team, particularly representing intermediaries in various proceedings filed against them in defamation suits and similar matters.
She regularly appears on behalf of clients as an arguing counsel in arbitrations and courts and is passionate about two things – a strong judiciary and women at work.
The bank’s efforts at cost saving through interventions like optimising real estate will bear full fruit in FY22, Kumar said, adding that it is an ongoing exercise., , yes bank, asset quality, gnpa, supreme court