Only seasoned investors should venture into corporate bonds rated below AA
Last Update Date: 06-10-2026
Published by Business Standard
Abhishek Kumar's role: Quoted
Abhishek Kumar cautioned that offers of high return with low risk are often misleading. He said direct bond investing suits those who can analyse credit risk, and suggested limiting corporate bonds to 10–20% of the fixed income portfolio.
More of Abhishek's views on saving and deposits
The article looks at retail interest in lower-rated corporate bonds sold through online bond platforms. It explains credit, interest rate and liquidity risk, and suggests starting with highly rated, short-tenure bonds, spreading money across issuers, laddering maturities and checking issuer financials beyond the rating.
Publisher source
Only seasoned investors should venture into corporate bonds rated below AA