Longer-tenure G-secs Gaining Popularity over PSU Bonds, State Development Loans as heading.

May 2022 Economic Times

Mumbai: Affluent investors allocating money to fixed income instruments are increasingly buying government securities(Gsecs) over AAA-rated public sector undertaking(PSU) bonds and state development loans(SDL), as the difference in returns has narrowed down and is at a historical low.
“We have never seen such narrow spreads between Gsecs and AAA-rated PSU bonds or SDLs. We are seeing a huge demand for Gsecs from rich investors since they are available in longer tenures, carry the highest safety and are more liquid,” said Vikram Dalal, MD, SynergeeCapital.