Asian Single Bs - Some Juice Left in Select Names

Lakshmi Iyer, CFA

Credit

<p>The key highlight of <a href="https://www.smartkarma.com/entities/iifl-holdings-ltd" target="_blank" data-smartkarma-citation="entities:20197:1" rel="noopener">IIFL Holdings (IIFL IN)</a> 1Q FY ’21 result was the improvement in liquidity and the reduction in the percentage of its loans under moratorium. The company has also resumed lending in certain segments. We raise our recommendation to hold based on its performance as well as the fact that as the company’s bonds are trading in line with Asian single-B names.</p><div class="content-highlight"><p><em>Fundamental credit research focused on Asian high yield, including coverage of areas which are generally overlooked such as Indian finance companies and non-USD denominated credit (SGD).  Sector agnostic. Research process consists of rigorous bottom-up company analysis combined with spotting market dislocations to provide trade ideas.</em></p></div>

The key highlight of IIFL Holdings (IIFL IN) 1Q FY ’21 result was the improvement in liquidity and the reduction in the percentage of its loans under moratorium. The company has also resumed lending in certain segments. We raise our recommendation to hold based on its performance as well as the fact that as the company’s bonds are trading in line with Asian single-B names.Fundamental credit research focused on Asian high yield, including coverage of areas which are generally overlooked such as Indian finance companies and non-USD denominated credit (SGD).  Sector agnostic. Research process consists of rigorous bottom-up company analysis combined with spotting market dislocations to provide trade ideas.

Mahindra & Mahindra Fin Services Ltd. (MMFS IN)

IIFL Finance - Turned the Liquidity Corner