RBC Sees Private Credit in Peril as Rates Stay High

A sustained period of elevated interest rates has the potential to cause pain in the fastest-growing part of corporate debt, according to RBC Global Asset Management. “We are concerned about how the direct lending private credit space would deal with a higher-for-longer world,” said Andrzej Skiba, …

Apollo Sees Private Credit Sprinting to $40 Trillion

Private credit could become a $40 trillion market in five years, according to Apollo Global Management. “We’re going to get there really soon,” Akila Grewal, the firm’s global head of credit product, tells Bloomberg News’ James Crombie and Bloomberg Intelligence analyst Matt Geudtner in the latest …

Bourbon and Bonds: The Credit Edge 2025 Outlook

Credit spreads are poised to hit record tight levels in the first quarter, even as debt issuance rises, according to participants in this special 2025 outlook edition of the Credit Edge podcast, hosted by Bloomberg’s James Crombie. We discuss bonds, loans, private credit — and bourbon — with the fo…

PineBridge Fears Credit Calamity as Demand Balloons

Swelling demand for limited supply of corporate bonds and loans could spell trouble for credit markets, according to PineBridge Investments. “The thing that gives me a lot of pause right now — and some concern — is the lack of net new supply versus the amount of demand out there,” said Jeremy Burto…

JPMorgan Likes Real Estate More Than Private Credit

Real estate and private equity are a better investment than direct lending, according to JPMorgan Asset Management. Those two have repriced on higher rates, while private credit hasn’t, Gabriela Santos, the firm’s chief market strategist for the Americas tells Bloomberg News’ James Crombie and Bloo…

TPG Angelo Gordon Predicts Home Equity Borrowing Boom

Homeowners cashing out after a surge in real estate prices presents a major opportunity for debt investors, according to TPG Angelo Gordon. “We’re seeing the evolution of home equity products,” said TJ Durkin, the firm’s head of structured credit and specialty finance. “There could be $150 to $200 …

Oaktree Sees Companies in Trouble as Rates Stay High

Private credit to risky borrowers that need a lifeline is poised to boom as rates stay high, according to Oaktree Capital Management. “You’re going to see a lot of what they call rescue financing,” said David Rosenberg, head of liquid performing credit at Oaktree. “That’s going to be one of the gre…

Green Bonds Will Withstand Political Shock, Nikko Says

Sustainable finance can keep growing despite potential headwinds from the next US administration, according to Nikko Asset Management. “If the political side is not asking for disclosure on strategies and updates on ESG, we as portfolio managers have to ask,” said Holger Mertens, Nikko’s head of gl…

Vanguard Is Cautious on Junk as Economy Gets Turbulent

The US economy heading for a potentially “turbulent landing” may spell trouble for junk bonds, according to Colleen Cunniffe, head of global taxable credit research at Vanguard. “We’re actually relatively cautious on high yield at the moment from a broad perspective,” Cunniffe tells Bloomberg News’…

Churchill Sees Mid-Market Loan Value ‘in Plain Sight’

Lending directly to middle-market US-based companies is the best opportunity in credit markets, offering double-digit yields, according to Randy Schwimmer, vice chairman at Churchill Asset Management. “We probably only have a small handful of lenders that we’re competing against,” Schwimmer tells B…