India Fund Managers Hunt for Spreads, Liquidity Amid Credit Woes.

The spread of three-year AAA-corporate paper over a similar tenor government bond stood at 105 basis points on Wednesday after widening to 109 basis points a day earlier, the highest since October, Bloomberg data showed. AAA state-companies' bonds are giving a spread of 70 to 100 basis points over govt bonds of different maturities. Prefer these high-quality bonds over sovereigns as the supply of government debt will increase from next fiscal year and top-rated state firms' bond supply may taper off. [Extracted from the article]