Why Perpetual Bonds Are Not as Safe as FDs

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Yes Bank was on the brink of a catastrophic failure. SBI and seven other Indian banks took a combined stake of 79% in Yes Bank. Bond investors were cocooned. Even equity shareholders were protected. But the one who invested in perpetual bonds thinking they were as safe as houses, they got the short end of the stick.

In today’s episode for 24th January 2023, we explain how an exotic financial instrument called a perpetual bond is coming back to haunt Yes Bank’s dreams.

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