RBI has left the rates unchanged which was an unanimous decision of Monetary policy comitee (MPC)

Though RBI had further scope of rate cuts at back of their mind but they have kept this as a cushion for future adversities in case unfortunately there is a second wave of pandemic

April to June was a record high of issuance of corporate bonds, Restructuring of loans is been allowed

Yields are falling for short term securities and they currently are becoming unattractive

If someone holds AAA bonds of 1-3 years so without any rate cuts they would be performing in range of 4-5% what really happens is inflation is going to be 4 or 5% so only joy in holding those securities is if and only if there are rate cuts, We have to look out of short term AAA at some point of time

Non traditional AAA are what we would be looking at

Currently investors should look at dynamic asset allocation even in debt and be more flexible!! Rather than being more conservative

We will keep updating, Fixed Income as a subject is vast, And is a rare promoted product as they dont have good level playing field in terms of compensation to distributors or others who are Authorized marketers, Thanks for going though these short notes

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