10.25% GS 2021 this bond has 10.25% but maturity is 30th May 2021
Does it mean it still have one interest payment left that is on 30th May 2021 along with principal will be paid to bank account. ?
Current price if am not wrong is 102 Rs. so on 30th May 2021 an investor would get 5.125 + 100 Rs. = 105.125 correct? @amitb @TradeB2B @Vij @rupeshmandal
How is the liquidity in these ? Do you track the liquidity status of these govt. securities ?
There has not been any transaction in secondary market fir this bond since September 2020. Yes 1 interest s due and will be paid and thus a total of 105.125 will be received. I don’t think you will be able to buy even at 104
Is there any website that we can check what is available to buy and what is totally illiquid ?
Can you suggest some G bond …that matures during 2021 or 22 and I can buy it easily.
Better you can buy icici gilt fund , returns are same around 9.5 % , no liquidity issue , exit option also easy , it’s not a good idea to go gilt in rising interest rate scenero
I am little confused…you are recommending gilt fund but at the same you are saying in a rising interest rate scenario it is not a good idea to go for gilt/gsec - if I am not mistaken …I think you are suggesting go for gilt fund but don’t go for Gsec (direct gsec)
Currently interest rate is not rising but most likely it will rise in like 3-6 months …don’t you think?
Yes , icici giltfund have different maturity bonds in his portfolio , like short term duration gsec , if interest rate rise depend upon the duration of bond the price will fluctuate , however the low duration low risk on bond price fluctuations , high duration bond are high of interest rate rising risk
I admire you.
@curiousvi in illiquid bonds like such GSEC, reading price and doing calculations based on that is of little use because there is no liquidity. Consider GSec you picked showing price of 102. Dig a bit deeper:
Last trade at that price happened on 1st Sep 2020 and nothing after it. today there isn’t any seller and I doubt there will be any till May.
So probably its a waste of time.