25% yield available on Reliance Home Finance bond. Would you invest?


#1

We saw some crazy yields on DHFL bonds, we still are as a matter of fact. In the past week or so, RHFL bonds have been trading at 20%+ yields. Although these bonds are thinly traded, it’s still a eye popping number.

Here’s the price movement of RHFL- N2. This bond is set to mature in Jan 2020. Compare this against a one year yield of 365 day that is yielding 6.77%.

If you are wondering what’s wrong with the company, I am guessing this collateral damage from RCOM’s bankruptcy filing. Both the companies the owned by Anil Ambani.