Lakshmi Iyer, CFA

Credit

<p>Prices on bonds 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>  have risen from 67 cents to the dollar on May 7 to current levels of 84 due to the global improvement in risk appetite . We currently downgrade the bonds to sell. While we expect the company to survive the crisis, in the near term, we think downside risks outweigh rewards for bondholders, especially given the rally. Specifically, we will need to watch liquidity for the next quarter. </p><p></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>

Prices on bonds of IIFL Holdings (IIFL IN)  have risen from 67 cents to the dollar on May 7 to current levels of 84 due to the global improvement in risk appetite . We currently downgrade the bonds to sell. While we expect the company to survive the crisis, in the near term, we think downside risks outweigh rewards for bondholders, especially given the rally. Specifically, we will need to watch liquidity for the next quarter. 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.

IIFL Holdings

IIFL Finance Ltd. - Downgrade to Sell