The usual norm for any investment is: better the credit quality, lower your return, and vice versa. But, what if you were to get the best credit quality at attractive yields (annualized rate of return)? Isn’t that irresistible.
The best credit is sovereign, that is, securities issued by the government. Usually, it means bonds issued by the Central government, or G-secs. It also includes securities issued by state governments, known as state development loans (SDLs), treasury bills (T-Bills) issued by the Central government, as well as sovereign gold bonds (SGBs).
