Corporate bond yields have risen on cue from 10-year government bond benchmark yield. Yield on top-rated corporate bonds, especially the AAA-rated, safest, corporate bonds, has risen since June. These are attractive options for those seeking yields higher than on bank deposits and, yet, want safety of principal.
Yields on 10-year benchmark government securities have been rising after the announcement of rise in wholesale price index (WPI) to 5.79% in July, up from 4.86% in June. The rise in bond yields was also due to the rise in the US Treasury yields, which added to bearish sentiments. Since RBI is left with limited policy options due to currency risks, growth in FY '14 may slip downwards, if the same trend continues.
Although growth is slowing, it has no debt and offers low valuation
As a small company...