Recommended Debt Products

Debt Market Scenario

The steepness of yield curve at shorter end of Maturity presents a good opportunity to lock in debt products positioned to take advantage of current high yield scenario. This trend is generally visible during the last quarter of financial year when short term interest rates tightens. We would recommend investment in the following products, which aims to benefit from high accrual.

AAA Corporate Yield Curve

Source: Bloomberg

ICICI Prudential Medium Term Plan - Investment Time Horizon - 6 Months

- One Year P1+ CP rates are at 6.70% with spread of over 100 bps over 3 Months P1+ CP
- Gives good carry opportunity for investment time horizon of 6 Months 
- Portfolio will primarily consist of high quality papers maturing between 9 to 12 Months
- Potential mark to market gains if rates fall.
- The subscription may be closed at a later date, to protect interest of existing investors 

ICICI Prudential Long Term Plan - Investment Time Horizon - 1.5 Years

- Three year AAA rated bond are at 8% with spread of 130 bps
- Market appears have priced in the potential rate hikes
- Portfolio will primarily consist high quality debt papers (PSU & Others) with maturity ranging 
 from 2.5 to 3 years.
- The portfolio aims to take ride down the yield curve for potential capital gains.
- One year down the line two year rates have to be at about 8.50% to equal one year return
- Long Term Plan can offer potentially better return with limited risk for investors with a time horizon  of 18 months.

Attached please find detailed note on each of the above product for your kind reference. 

For any queries or feedback, please write to us at investorspleaselisten@in.com or get in touch with your Relationship Manager @ 0-9818269396