IL&FS default shows ABS servicer continuity risk: Fitch
Updated : October 12, 2018 06:17 AM IST
Recent defaults by Infrastructure Leasing and Financial Services (IL&FS) have highlighted the continuity risks of the country's asset-backed security (ABS) servicers, Fitch said in its report Thursday.
It further said the failure of IL&FS has significantly undermined market sentiment towards the country's non-bank financial institution (NBFI) sector and their ABS issuance.
Transaction flow has stalled and there is a rise in yields on the securitisation notes of NBFIs, it added.