Yields soften, but companies hold back bond plans over IL&FS overhang

Companies wait on their bond plans as credit spread refuses to come down

Even as bond yields have softened by about 50 basis points in the last two months, companies would still like to wait out on their bond plans as credit spread is refusing to come down after the IL&FS crisis. 

The 10-year government bond yields have softened about 50 basis points, thanks to continued liquidity infusion by the Reserve Bank of India (RBI), bringing down the corporate bond yields too. 
 

However, the spread between government bond yields and corporate yields have widened. The reason is that even as there is ample reason for investors to cheer about the fixed income market,