It is not just protection of credit risk, but a regulatory cap on mutual fund investments in housing finance companies that are prompting long term investors to buy cheaper blue chip securities as bond yields have shot up seven to 12 basis points, pushing prices down.
Long to medium term debt investors should see it an opportunity to enter fresh.
Top rated Housing Development Finance Corporation (HDFC) and LIC Housing Finance bonds are yielding higher in the secondary market now. The spread, or gap, between similar rated government-owned companies and them have also widened.
