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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

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Last Updated : Dec 20 2018 | 8:34 AM IST

India’s highly rated corporate bonds 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 corporate bonds over government bonds are at their highest in nearly five years, amid lingering fallout from defaults by major infrastructure-lender IL&FS group.

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, he said in an interview.

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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.