We sense possibility of interest rates reversing: Mahindra MF's Rahul Pal

We also think that credit spreads may also contract once we have a settled gilt curve

Debt markets have had to deal with an unusually high volatile period in 2018. Default by IL&FS came as a rude shock to investors parking funds in liquid and income schemes. The concerns over creditworthiness of issuers and rising interest rates had pushed debt schemes lower on investors’ radar. In an interaction with Jash Kriplani, Rahul Pal, head of fixed income at Mahindra Mutual Fund, offers his views on whether 2019 can bring some cheer to debt market investors. Edited excerpts:

Where do you see interest rates moving next year?
 

We had started sensing the possibility of interest rates reversing. However,