Include mid-rated bonds in your portfolio for higher risk-adjusted returns: Crisil

Given the reduction in default rates and strong debt protection metrics of ‘A’ category rated corporates, proactive government and regulatory measures, quicker and structured insolvency processes and favourable risk-adjusted returns, the current environment is ripe for investors to opt for  mid-rated bonds, rating agency Crisil said in a note. Risk-adjusted return is the difference between market yield and required yield. Market yield represents the 12-month average of the daily quoted yield on bonds outstanding with modified duration of 2-3, as per CRISIL bond matrix.

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