DHFL bonds back in secondary mrkts with 67% yield

MUMBAI: About Rs 50 crore worth of DHFL bonds changed hands in the secondary market this week after a long gap, said two industry veterans with direct knowledge of the transaction, although the deal was struck at a likely record discount to the original issue.

The 9.25 percent paper was traded at 67 percent yield, perhaps a record high in recent years for any corporate paper in the country. Bond yields and prices move in opposite direction.

The secondary market trade took place late in the afternoon on Tuesday.

“A British bank is said to have bought the paper, while a mid-sized domestic insurer sold it,” said one of the persons cited above.

These bonds were sold in September, 2016, in a public issue that had also seen participation from retail investors. These bonds are due to mature in 2023.

Last September, these bonds had traded at 11 percent when DSP Mutual Fund sold some of the paper to a large non-banking finance company, backed by a large conglomerate.

DHFL Tuesday cleared pending interest dues on bonds it had sold last year, scotching speculation that a default was likely on the payments that were otherwise scheduled before the Eid festival earlier this month. The home financier paid Rs 862 croRead More – Source

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