Corporate Bond---Bond with the Best...But How???

Financial markets are full of risky products and with people betting on their proven performance such products catch the fancy of novices and experts alike . Shorting stocks , playing with Silver , Going Long on Gold Futures -- is all part of financial play . But buying into GoI bond --the safest product is like searching for a needle in a haystack . There are just no sellers out there for retail investors !

RBI -- India's central bank in its holier than thou attitude is yet to usher in reforms in this space. A handful of players , mostly banks trade amongst themselves . Retail investors can't buy or sell bonds like they do in stocks . Huge inflow of money awaits if the regulator gives its green signal to arguably the most urgent of financial sector reforms . While important checks and balances need to be put in place but having the whole sector under covers for retail participation is , in according to my view , stretching things a wee bit too far . Corporate bond prices are a latent function of sovereign bonds , so for this segment to take off in big way RBI needs to begin with opening of GoI bonds . Rest assured there would be little opoosition to this move by investors and intermediaries --simply because they don't exist in the market and wish to be a part of it (subject to regulator's approval) !