Tax benefits were a primary factor for bonds before COVID. Now, investors also prioritize liquidity along with tax benefits and returns, indicating a shift in perception.
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CNBC TV1811-12-2025, 15:04

Bond Yields: Investor Impact & Growing Interest in NCDs

  • Bond yields and prices move inversely; rising yields mean falling prices, and vice-versa.
  • Rising yields make existing bonds less attractive for current holders but offer new investors higher returns.
  • Falling yields increase the value of existing bonds but mean higher prices and lower returns for new investors.
  • Non-Convertible Debentures (NCDs) are gaining traction as company-issued loans with fixed interest and maturity.

Why It Matters: Understanding bond yields is vital for your investment returns and NCD decisions.

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