What’s the catch with high yield PSU bonds? – Livemint

What’s the catch with high yield PSU bonds? – Livemint

We explain how they work and if there is a catch in this investment product.

How do they work?

Brokerages buy bonds from institutions such as banks, mutual funds, and pension funds in the secondary market. They then sell you the bonds at a higher price. For example, the broker can buy a bond at ₹100 and you sell it at ₹102.

Another way of saying this is that they sell you bonds at a “lower…

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