BondScanner’s founder Nishchay Nath cautioned investors that a credit rating is an opinion, not a guarantee—an important distinction as issuers struggle to meet obligations.
Ashish Thekkekara of Capital Stack stressed the need to look beyond headline yields, noting that higher returns often mask higher default risk.
Mohit Gupta of EquiRize highlighted interest‑rate sensitivity, explaining that longer‑dated bonds suffer sharper price swings when rates rise.
Liquidity remains a challenge; secondary markets for corporate bonds are thin, making exits costly for those needing quick liquidity.
Investors are advised to diversify across issuers, sectors, and maturities to mitigate concentration risk, as concentration can magnify losses during financial stress.
Operational risks—platform registration, settlement processes—are also critical, with Gupta urging checks on SEBI registration and contractual clarity before committing capital.