Rising interest in retail trading of high-yield corporate bonds reflects shifting investor strategies in a changing market
Online platforms now offer retail investors access to corporate bonds. These securities provide mid-teen yields with low minimum investments. Retail investors are increasingly participating in the corporate bond market. This trend is driven by flat equity markets and regulatory changes. Online platforms and reduced face values ease investor access to debt.
Mumbai: The high-yield corporate bond market is increasingly attracting retail investors, thanks to online platforms offering securities with mid-teen yields at affordable prices, as low as ₹10,000. This marks a significant shift in access to corporate debt, as previously, structured financings like Shapoorji Pallonji (SP) Group bonds required minimum investments of ₹10 crore for lower-rated companies.
Exchange data reveals a surge in retail activity, with the number of transactions more than doubling to 2.8 million in FY26, and potentially reaching 4.1 million if the current pace persists, according to Vishal Goenka, co-founder of IndiaBonds. Yields vary from around 9-10% for AA-rated non-bank lenders to over 13% for BBB-rated issuers.
Bonds such as Moneyboxx Finance's, rated CRISIL BBB, with a 10.2% coupon and a minimum investment of ₹10,000, and ReGreen Excel EPC India's, rated CARE BBB, with an 11.5% coupon and 13.5% yield, both present attractive options. Real estate-linked issuers, such as Embassy KSL Realty Ventures, rated Acuite BBB-, offering a 13.4% coupon, are also popular.
The trend is driven by a need for balanced portfolios and regular returns, exacerbated by flat equity markets and facilitated by regulatory changes and online bond platforms.
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