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IIFL Wealth sees opportunity in corporate bonds after IL&FS crisis

Yatin Shah, co-founder and executive director of IIFL Wealth Management Ltd., expects the spreads to correct within 4-6 months as the "bit of panic" settles down

Ronojoy Mazumdar | Bloomberg 

growth, corporate bond, banks, balanced sheets, bankruptcy code
Illustration: Ajaya Mohanty

India’s highly rated present a good buying opportunity as authorities looking to move past fallout from a landmark default could take further supportive steps in coming months, according to the nation’s second-biggest wealth manager.

Spreads on highly rated over government bonds are at their highest in nearly five years, amid lingering fallout from defaults by major infrastructure-lender

Yatin Shah, co-founder and executive director of Management Ltd., expects the spreads to correct within 4-6 months as the "bit of panic" settles down, he said in an interview.

ALSO READ: Sebi guidelines on corporate bonds likely to keep yields elevated

That will happen as the regulator takes measures that could include additional liquidity or some relaxation of the refinancing window for non-bank lenders, according to Shah.

First Published: Thu, December 20 2018. 08:30 IST
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