I’ve been tracking the SLB market for the past few weeks as I came to know about this opportunity to get a great yield on your long term portfolio bets.
However, I’ve observed that there is almost zero awareness/interest/liquidity in this product. There is zilch interest in fundamentally strong businesses like Asian Paints, HDFC Bank, Nestle, Titan, etc. - either because there is already an F&O market to play them or it doesn’t make sense to go short on these businesses. And if in case there are any bids for such companies - the yields are like 0-2% per annum.
Most of the decent bids are for weak damaged corporates such as Vodafone Idea, Punjab National Bank, Zee which may not be possible to short due to lack of presence in the F&O market.
So overall, I realized that this SLB segment is not worth following unless there is a market crash such as March 2020 where even good businesses might have got some crazy yield bids, but then in those times you may not want to lend out your securities due to various fears or panic all around.