From mint · · 1m 10s
Yes Bank AT1 Bonds Case Lessons for Investors
Investors must assess risks before buying high-yield products like Yes Bank AT1 bonds.
In brief
Investors must assess risks before buying high-yield products like Yes Bank AT1 bonds. Investors should evaluate risks and match products to their risk tolerance rather than relying on marketing claims. Originally reported by mint.
Yes Bank AT1 Bonds Write-Off
Investors must look beyond marketing claims and assess expenses, liquidity constraints and other features of products like actively managed funds and Ulips.
₹8,415 Crore Write-Off
The entire quantum of ₹ 8,415 crore was written off by Yes Bank in March 2020.
Bombay High Court Decision
Aggrieved investors moved the Bombay high court, which overturned the decision to write off the bonds.
Supreme Court Upholds
The Supreme Court upheld the Bombay high court's order to reverse the write-off decision.
Pending Coupon Issue
The current issue is about the pending coupon (interest) payment for the bonds.
Sebi Measures for AT1 Bonds
Sebi restricted AT1 instruments to qualified institutional buyers with a minimum investment of ₹ 1 crore.
Investor Risk Awareness
Investors should understand risks and only invest if it suits their risk appetite.
The one thing
Investors should evaluate risks and match products to their risk tolerance rather than relying on marketing claims.
