Reliance Capital bonds trade at 80% discount

Reliance Capital bonds on Wednesday changed hands in the secondary at a record 80 per cent discount a few days after the Insolvency and Bankruptcy Code accommodated NBFC paving the way for early resolution of such indebted companies. A large European bank has bought those papers for Rs 60 cr from a domestic fund house at a yield as much as 99.99 per cent. Bonds were traded at a price of Rs 20. Those unlisted bonds have a residual one-year maturity. “For the first time, we are experiencing that market for deep-discount bonds are expanding. The NBFC crisis has only sparked off this market,” said a domestic bond arranger.