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

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.