Trump to impose new $100k fee for H-1B visas
9 hours ago
- #Investment
- #Finance
- #Bonds
- Equity market volatility and geopolitical tensions are increasing demand for predictable income, making bonds attractive.
- Investors are choosing between government securities (G-Secs) for safety and corporate bonds for higher yields.
- Government securities (G-Secs) are risk-free with sovereign backing, offering stability but lower yields.
- Corporate bonds are gaining traction due to healthier balance sheets and improved credit ratings.
- Corporate bond default rates are at a 16-year low, making them a safer investment than before.
- Bonds provide portfolio stability with fixed coupon payments and capital protection at maturity.
- Indian corporates are entering a strong cycle with lower leverage and steady earnings growth.
- Government bonds remain evergreen due to sovereign backing, though with lower returns.
- A balanced portfolio can include a mix of G-Secs, corporate bonds, equities, and liquid instruments.
- Sovereign rating upgrades improve the credit profile of corporates, making corporate bonds safer and more attractive.