24 December 2011

Muthoot Finance NCD - Series II : do NOT invest

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Our Recommendation: Muthoot Finance NCD - Series II : do NOT invest


You will lose money and bond will trade at discount on listing.


Muthoot Finance NCD - Series I bonds for 5 years are trading at yield of 13.5% (actual interest rate coupon 12.25%).. trading at 4% discount!!!


Currently they offer 5 years at 13.25% ... lower than yield of 13.5% and will trade lower


NO LISTING GAIN EXPECTED


do not invest, unless you plan to hold for long term. better to buy from secondary market.





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