Bonding with Bonds

Alternative to Fixed Deposits

Portfolio Review
16th Oct 2020
Genus

Emkay Global Financial Services Limited

DEBT MARKET PROPOSITION

▪ The Market Structure

Contents
▪ Some Reality Check

▪ Types of Transactions & Products

▪ Suggested Papers

▪ Scope
Portfolio for Leverage
Review
Genus

Emkay Global Financial Services Limited

Structure of Market

Debt Capital Market Fixed Income Advisory

CD/CP/ Bonds G-Sec/SDL/T- ICD/LAS/Promoter

Bonds / /NCD bill/NCD/Tax-free Funding/WCL/Small ticket Term
NCD bonds/ZCB Loans

PLACEMENT
SOURCING Banks, MFs, Insurance
Corporates, Companies, Retiral Funds,
Institutional Market Corporate Treasuries,
Large NBFCs.
Portfolio Review
Private
Placement
Public
Issue
Genus
SECONDARY
MARKET
LOAN BASED
PRODUCTS

Emkay Global Financial Services Limited

Bank FDs & Returns

Banks FD Interest Rates Tenure

SBI 3.30% – 6.50% 7 days to 10 years
Canara Bank 4.00% – 6.25% 7 days to 10 years
HDFC 3.00% – 6.25% 7 days to 10 years
ICICI Bank 3.25% – 6.25% 7 days to 10 years
Portfolio Review
Axis Bank 3.50% – 6.75% 7 days to 10 years
Genus
IDFC First Bank 4.00% – 7.75% 7 days to 10 years
Emkay Global Financial Services Limited
Liquid Mutual Funds & Returns

Avg. Simple Annualised Returns [%]

AUM
Scheme Name YTM Maturity
( in cr) 1 Week 2 Week 1 Month 2 Months 3 Months 6 Months YTD
(days)
Aditya Birla SL Liquid Fund(G) 36,679 3.67 51.10 2.97 3.09 3.32 3.82 4.34 5.01 5.03
Aditya Birla SL Liquid Fund(G)-Direct Plan 36,679 3.67 51.10 3.07 3.19 3.46 3.93 4.44 5.11 5.13
Axis Liquid Fund(G)-Direct Plan 27,032 3.38 55.00 2.94 3.07 3.18 3.51 4.03 5.01 5.05
Axis Liquid Fund-Reg(G) 27,032 3.38 55.00 2.87 2.99 3.11 3.44 3.97 4.95 4.99
HDFC Liquid Fund(G) 99,867 3.43 41.00 2.87 3.00 3.07 3.33 3.84 4.74 4.78
HDFC Liquid Fund(G)-Direct Plan 99,867 3.43 41.00 2.97 3.10 3.17 3.43 3.94 4.85 4.88
ICICI Pru Liquid Fund(G) 57,335 3.63 44.94 3.03 3.10 3.22 3.64 4.20 4.99 5.01
ICICI Pru Liquid Fund(G)-Direct Plan 57,335 3.63 44.94 3.15 3.22 3.34 3.76 4.32 5.11 5.12
Kotak Liquid Fund(G)-Direct Plan 36,040 3.43 43.80 2.89 3.01 3.21 3.61 4.02 4.76 4.81
Kotak Liquid Fund-Reg(G) 36,040 3.43 43.80 2.84 2.96 3.16 3.56 3.96 4.71 4.76
Nippon India Liquid Fund(G) 30,604 3.57 54.00 2.91 3.04 3.18 3.61 4.17 4.97 4.99
Nippon India Liquid Fund(G)-Direct Plan 30,604 Portfolio
3.57 54.00 Review
3.00 3.13 3.27 3.70 4.26 5.07 5.09
SBI Liquid Fund(G) 50,762 3.40 58.40 2.87 3.02 3.07 3.48 4.00 4.82 4.85
SBI Liquid Fund(G)-Direct Plan 50,762 3.40
Genus
58.40 2.95 3.10 3.15 3.56 4.08 4.90 4.93
UTI Liquid Cash Plan(G)-Direct Plan 27,081 3.41 54.28 2.89 3.04 3.18 3.57 4.08 4.90 4.94
UTI Liquid Cash Plan-Reg(G) 27,081 3.41 54.28 2.82 2.97 3.10 3.48 3.99 4.79 4.82
Emkay Global Financial Services Limited
Corporate FDs & Returns

Fixed Deposit
Name of Corporate Interest Rate Tenure
(in %)
Mahindra Finance FD 6.80% – 7.30% 15 to 40 months
LIC Housing Finance
FD 6.00% – 6.10% 1 – 5 years
Bajaj Finserv FD 6.90% – 7.10% 12 to 60 months
HDFC Ltd. FD 6.35% – 6.45% 12 to 84 months
Shriram Transport
Finance FD Portfolio – 8.18% 12 – 60 months
7.34% Review
ICICI Home Finance Genus 12 to 120
FD 6.50% – 6.85% months
Emkay Global Financial Services Limited
Fixed Income Instruments & Indicative Returns

Instrument Type Tenor Expected Returns Credit Rating

Tax free Bonds Upto 10 years 4.10%-4.30% AAA rated
PSU Bonds upto 10 years 6.70%-6.85% AAA rated
Perpetual Bonds upto 5 years 7.10%-11.00% AA+ to A-
MLDs UptoPortfolio
3 years Review
5.30%-9.00% AAA to AA
Taxable NCDs Upto 3 years
Genus5.5%-13.00% AAA to A+
Emkay Global Financial Services Limited
Opportunities in AAA Rated Bonds

Name of Credit Category Tenor Expected Returns

REC PSU 10 y 6.80%-6.90%
NABARD PSU 10 y 6.35%-6.45%
HDFC Limited CORPORATE 10 y 6.65-6.75%
LIC Housing NBFC 10 y 7.00%-7.10%
HDB Financial NBFC 2y 5.40%-5.50%
M&M Financial NBFC 2y 6.70%-6.80%
Tata Capital Ltd NBFC 2y 6.70%-6.80%
Portfolio Review
SBI Cards & Payment NBFC 2y 6.90%-7.00%
Genus
Kotak Mahindra Investments NBFC 2y 5.70%-5.80%
Emkay Global Financial Services Limited
Opportunities in AA+/AA/AA- Rated Bonds

Name of Credit Category Tenor Expected Returns

Hero FinCorp (AA+) NBFC 7y 7.45-7.5%
Tata Steel Ltd (AA) CORPORATE 6y 7.4%-7.50%
UP Power (AA) STATE GAURANTEED 5y 8.4%-8.45%
NIRMA Limited (AA-) CORPORATE 2y 9.45%-9.50%
STFC Limited (AA+) NBFC 4y 11.00%-13.50%
IDFC First Bank (AA+) PRIVATE BANK 5y 7.60%-7.8%
GE Shipping (AA+) CORPORATE 5y 7.90%-8.10%
Hindalco Industries (AA+) CORPORATE
Portfolio Review 5 y 7.6%-7.75%
Tata Power (AA-) CORPORATE 5y 9.00%-9.25%
Genus
SAIL(AA-) CORPORATE 5y 8.35%-8.50%
Emkay Global Financial Services Limited
Opportunities in A+ paper

Name of Credit Category Tenor Expected Returns

IOB (A+) PSU BANK 8y 10.30-10.40%
TATA MOTORS FINANCE (A+) NBFC 9y 10.75%-10.90%
PUNJAB & SIND BANK (A+) PSU BANK 2y 10.00%-10.10%
KARNATAKA BANK (A+) PRIVATE BANK 3y 10.00%-10.10%
Indostar Capital Finance NBFC 3y 9.45%-9.65%
AU Financiers NBFC
Portfolio Review 3y 10.40%-10.75%
Aadhar Housing Finance NBFC Genus 3y 10.65%-10.80%
Emkay Global Financial Services Limited
Our Suggested Tax-free Bonds

Coupon Security Maturity Quantum Yield

8.46% PFC Tax Free 2028 30-08-2028 Multiples of 10 Lacs 4.10%-4.30%

7.04% IRFC Tax Free 2028 23-03-2028 Multiples of 50 Lacs 4.10%-4.30%

7.34% IRFC Tax Free 2028 19-02-2028 Multiples of 50 Lacs 4.10%-4.30%

8.63% IRFC Tax Free 2029 26-03-2029 Multiples of 50 Lacs 4.10%-4.30%

8.26% IIFCL Tax Free 2028 23-08-2028 Multiples of 50 Lacs 4.10%-4.30%

8.46% IIFCL Tax Free 2028 30-08-2028 Multiples of 50 Lacs 4.10%-4.30%

 Our Suggested Bank Perpetual Bonds

Credit Maturity / Call

Sl No Coupon Paper Details Rating Agency YTM Ticket Size
Ratings Date

BANK OF BARODA Multiples of 50 Lacs

1 8.70% AA+ CRISIL & ICRA 28-Nov-24 8.28%

STATE BANK OF INDIA Multiples of 50 Lacs

2 7.74% AA+ CRISIL & ICRA 09-Sep-25 7.45%

HDFC BANK
3 8.85% AA+ CRISIL & ICRA 12-May-22 6.30% Multiples of 50 Lacs

ICICI BANK LIMITED Multiples of 50 Lacs

4 9.20% AA+ CRISIL & ICRA 17-Mar-22 7.10%

CANARA BANK LIMITED Multiples of 50 Lacs

5 9.55% AA+ CRISIL & ICRA 05-Mar-25 8.25%

PUNJAB & SIND BANK LIMITED

6 10.90% A+ CARE & ICRA 07-May-22 9.75% Multiples of 50 Lacs
Disclaimers
• 1. The information provided is not intended to be used by investors as the sole basis for investment decisions, who must make their own investment decisions, based on their own
investment objectives, financial positions and needs of specific investor. The information provided may not be taken in substitution for the exercise of independent judgment by any
investor. The investor should independently evaluate the investment risks and make independent judgment with regard suitability, profitability, and fitness of any product or service
offered herein above.
• 2. Some of the products described hereinabove may be developed and offered by third parties ('third party products'), which Emkay Global Financial Services Limited or its Associate
Companies may be making available to you. Emkay Global Financial Services Limited or its Associate Companies does not endorse or guarantee these third-party products in any
manner and will not be liable for their performance or otherwise. The products described in this document may not be protected against sovereign risk including risks arising from any
changes in applicable Indian or other relevant laws, represent speculative investments and may involve a high degree of risk. Investors' capital may not be guaranteed in any respect and
they could lose all or substantial portion of their investment.
• 3. Please familiarize yourself with all the terms and conditions pertaining to the specific products and services prior to availing of it. Emkay Global Financial Services Limited or its
Associate Companies is not acting as your adviser or in a fiduciary capacity in respect of the products and services referred to in this document and accepts no liability nor responsibility
whatsoever with respect to the use of the information provided hereinabove.
• 4. Investors to exercise their own independent judgment in using any of the information and documents – Term sheet, Presentation and Information Memorandum provided by Emkay
Global Financial Services Limited Ltd. or its Associate Companies and conduct separate research into the suitability of the product for a particular financial situation, circumstances,
attitudes, motivations and preferences. Investors should consult their financial advisers for the suitability of the product and advise on investments.
• 5. Emkay Global Financial Services Limited or its Associate Companies or any of its director/s or principal officer/employees and associate companies do not assure/give guarantee for
the performance of returns on your investments.
• 6. Please note that Investments are subject to multiple risk factor(s). Please read the Information memorandum for full understanding and detail carefully before investing. The investor
should independently evaluate the investment risks before making the investment decision.
• 7. Emkay Global Financial Services Limited or its Associate Companies as part of their services might be distributing their products to clients or prospective investors. Emkay Global
Financial Services Limited or its associates may or may not hold the above referred securities being distributed as part of their own investments.
• 8. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future
performance. Information, opinions and estimates contained in this report reflect a judgment of its original date of publication by EMKAY GLOBAL FINANCIAL SERVICES LIMITED or its
Associate Companies and are subject to change without notice. The price, value of and income from any of the securities or financial instruments mentioned in this report can fall as well
as rise.
• 9. The Report is purely for information purposes and does not construe to be investment recommendation/advice or an offer or solicitation of an offer to buy/sell any securities.
• 10. Investors should not solely rely on the information contained in this Report and must make investment decisions based on their own investment objectives, judgment, risk profile and
financial position. The recipients of this Report may take professional advice before acting on this information.
 T h a n k Yo u

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