An 11% bond is paying me ~4% more than an FD. I tried to find where every bit of that extra return comes from

An 11% bond is paying me ~4% more than an FD. I tried to find where every bit of that extra return comes from Was looking at an Aye Finance bond on Stable Money and instead of asking “11% is good or not?” I started wondering why the market needs to pay me 11% to own it. Bond is: Aye Finance ISIN INE501X07687 11% coupon IND A+ / Stable now secured matures Apr 2029 A comparable big-bank FD is around 6.5%. So roughly 4-4.5% extra. Where is that coming from? First correction to my own title: **11% is coupon, not necessarily the YTM I get if I buy today.** Actual return depends on purchase price. So this is not a perfect “11 vs 6.5” comparison. Still, why does this paper need such a high coupon in the first place? Went into Aye's numbers. The reassuring side: AUM is now around ₹7,324cr. Q1 FY27 PAT was ₹74.5cr, up 144% YoY. GNPA improved to 4.49%, NNPA 1.67%. Capital also got much stronger after the IPO and India Ratings upgraded them to A+ Stable this year. All pretty decent. But then you see what business they are actually in.