Thread by @IamMisterBond

Debt Markets facing lack of buyers: Since 9th March, 1 yr CD rates have gone up by 50 bps, 2-3 yr AAA PSUs yields have gone up by 50-100 bps, blue chip HFCs like HDFC bond yields have gone up by 70-80 bps & 10 yr corp bond yields too by 50 bps

This is a good time to capture higher yields in AAA rated PSU/Corporate Bond schemes following Constantly Rolling Down strategy with longer duration and no #CreditRisks.

When most Central Banks have cut rates aggressively, #RBI has still kept this option in its armoury and only announced liquidity infusion of Rs.1 lac crore thru LTRO.

Very soon, RBI will have to follow suit and cut rates as confidence boosting measure in these crisis times and also ensure transmission of this rate cut.

Some of the schemes following constantly Rolling Down strategy:
Edelweiss Bharat Bond Fund (3 & 10 year options investing in AAA PSU Bonds),
Edelweiss Banking & PSU Debt Fund (AAA-10 year-no AT1 exposure) &
Axis Dynamic Bond Fund (AAA 10 Year Corp Bonds)

Treat these as Open Ended FMPs. When yields go up, invest in these schemes. At every rise in Yields invest more with 5-10 year investment horizon.

Treat these as passive Debt allocation under Asset Allocation strategies with no #CreditRisk

Check with Relationship Managers of @EdelweissAMC and @AxisMutualFund to know current Yields and take appropriate investment calls.

Remember, these are Long Term schemes; there will be intermittent volatility. Ride it by holding for longer periods or till Maturity