Mumbai: For risk takers, bonds of Dewan Housing Finance Corporation (DHFL), which missed out on its interest payment recently triggering credit rating downgrades, present an opportunity to make big bucks. Investors could make 33-50 per cent on DHFL bonds maturing in August and September if the company repays its bondholders, said wealth managers. This translates into a 200 per cent annualised return.Yields on some of the DHFL bonds have shot up to as high as 200 per cent. DHFL bonds, which are traded on the BSE, plunged by as much as10-20 per cent last week, as investors rushed to sell them after the company missed paying interest on its bonds due on June 4. Though trades were low, yield to maturity (YTM) on the bonds maturing in August and September this year spiked to above 200 per cent.Yield to maturity (YTM) is the total return expected on a bond if the investor holds it till maturity with all payments made as scheduled and reinvested at the same rate.The sudden drop in DHFL bond prices has created an opportunity for investors.“First, only high risk takers should get into trades like this one. Second, investors who want to buy DHFL bonds from the market now should restrict to short duration papers (i.e. which is maturing in 2019) because the DHFL promoter will try to meet their debt obligations now and therefore, the chance of investors losing their money is less in short duration papers,” says Feroze Azeez, deputy CEO, Anand Rathi Wealth Services.Though the company is in the process of selling assets to return the money, retail investors who are not well-versed with the dynamics of the bond market, should stay away, said advisors.“For high risk takers this is a good proposition as returns could be very high. However, retail or small investors who primarily buy bonds to earn interest income should simply stay away,” says Rupesh Bhansali, head (distribution), GEPL Capital.DHFL made two public issues of NCDs in August 2016 and May 2018. These NCDs had tenures of 3 years, 5 years, 7 years and 10 years, respectively.Of the first tranche NCDs with a tenure of 3 years, the first one comes up for maturity in August 2019. These bonds with a face value of Rs 1,000, carry a coupon of 9.2 per cent and trade at Rs 753, giving a yield to maturity of 213 per cent. Another bond that matures in September 2019, carries a coupon of 9.1 per cent and trades at Rs 666 giving a yield of 205 per cent.Traded volumes in these NCDs are thin, with just 200-1,000 bonds changing hands amongst investors in a day at the stock exchange. This is because most retail investors buy bonds to earn interest till maturity. Trading in bonds is complex and many investors do not know how to calculate yields making it difficult for them to trade.Bonds maturing in 2021 and beyond have low yields. For example, DHFL bonds maturing in August 2021, saw 1,364 bonds being traded and closing at Rs 517, giving investors a yield of 48.24 per cent. The bonds fell by 14 per cent in trade last Friday. Similarly, bonds maturing in June 2028, trade at Rs 425, giving a yield of 21.79 per cent, to prospective investors.