Shopping For NCDs on the Stock Market
July 6, 2011 7 Comments
Buying an NCD at an IPO when interest rates are high and holding it to maturity is a pretty sound idea.But buying NCDs in the secondary market can be pretty profitable too.
The prices of NCDs vary with changes in the prevailing interest rates.So careful shopping when prices fall as interest rates rise and holding on till maturity is more profitable.
If a person is good at figuring out which way the interest rates will move,he could buy NCDs cheap and exit them when their prices peak.This could potentially increase returns.
wealthymatters 