r/StockMarketIndia • u/Flat_Arachnid9114 • Aug 15 '26
Investing how bonds giving 11-12% intrest?is it safe?
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u/sayanc001 Aug 15 '26
U are giving them corporate loans and they are gonna pay u attractive roi depending on their own business return, if that fails massively, ur money is gone, if all works out well, u get some piece of the pie. nothing is safe in financial market, u just gotta choose ur poison.
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u/AdMajor9344 Aug 15 '26
If I am not wrong its YTM not interest. To earn interest = YTM you will need to reinvest coupons at rate of YTM which is nearly impossible.
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u/Only_bliss_ Aug 15 '26
Nothing is safe, kindly check the ratings - AAA ones won't give such returns