PNB Housing's bond investors not worried, yields drop up to 211 bps
PNB Housing bonds carrying a coupon of 8.58 per cent maturing in May, 2023, are still lower by 87 basis points since May 4 this year.
Synopsis
PNB Housing Finance is rated AA by ICRA, with a negative outlook. To be sure, secondary market trades are not so liquid, with trades ranging from a few lakhs to Rs 270 crore a lot. Yields vary depending on the tenor of the issue.
MUMBAI: Debt buyers aren’t really worried that PNB Housing Finance’s latest fundraising is seemingly caught in a legal labyrinth. Yields on bonds sold by the home financier dropped up to 211 basis points between April and July in the secondary markets, suggesting the presence of enough eager buyers.
Existing investors, including several top 10 mutual funds, could log mark-to-market gains. A few large insurance and pension funds also bought
