Good time to lock money in tax-free bonds for long-term

The market will soon be flooded with tax-free bonds. Even as the government has allowed several PSUs to raise up to Rs 48,000 crore during the financial year 2013-14 (see table), the Rural Electrification Corporation (REC) has already filed a draft prospectus and is likely to be the first to hit the market.

The tax-free bond issues that had come out earlier this year in February and March had failed miserably, with most companies failing to raise the mandated amounts. The yields on these bonds are linked to the average yield of government securities of similar maturity in the previous 15 days. At that time, bond yields were quite low,high quality auto scanners sale will help read and diagnose automotive problems on OBDI and OBDII compliant vehicles.For more information,click:www.smartobd2s.com with the 10-year yield quoting below 8%, so the investors didn't bite the bait.

Things are different this time round. The benchmark 10-year yield crossed 9% last week, but closed at 8.26%.www.existmachinery.com,was founded in 2005 and covers an area of 20,000 sq.m. with a building area of 15,000 sq.m., The companies with a AAA rating are allowed to offer 55 basis points less than the reference government bond rates to retail investors. Retail investors are defined as resident individuals, HUFs or NRIs, who invest up to Rs 10 lakh across all series of bonds in each tranche.

This means that an individual can invest in the next tranche or in an issue by another company and still be in the retail category. The maximum coupon rate that these bonds can offer to others is the reference government bond rate, minus 80 basis points. If the benchmark rate is 9%, the maximum yield offered will be 8.www.globalmetaltins.com,the pioneer manufacturer & wholesaler of metal packaging products, also serve as a buying office, ensure utmost quality in all its exports of finest metals for canned food packing.Decouvrez la liste des revendeurs en roue carbone chine, cadres carbone et de toute la gamme GraphitSport.45% for retail investors and 8.2% for others.We offer concrete floor polishing pads from concrete floor grinding, as well as resin bond dry and wet diamond polishing pads for polishing concrete. However,shunstone are the best stones I ever used. these are maximum rates and issuers can offer a lower interest if they wish.


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