The Big MBS Trade Has Legs Even After Government Buys, Says Clark

Mortgage-backed securities look attractive even after government purchases snapped spreads tighter, according to Clark Capital Management. “I don’t think the trade is completely over yet because corporates are even tighter,” Oliver Chambers, head of fixed income for the firm’s separately managed ac…

Tech Debt Binge Is Just Getting Started

Technology companies flooding debt markets are just getting started on funding a $4 trillion artificial intelligence boom, according to Bloomberg Intelligence. “This is the tip of the iceberg,” Robert Schiffman, BI’s senior tech credit analyst, tells Bloomberg News’ James Crombie in this special ep…

Distressed Buyer H.I.G. Sees Most Loan Distress in Years (Podcast)

Corporate loans signed when rates were low are increasingly hitting a wall as they come due, according to H.I.G Bayside. “There’s a level of discount in these stressed credits that we haven’t seen for a number of years,” Jackson Craig, who co-heads the credit-focused arm of H.I.G. Capital, tells Bl…

Pimco’s President Says Private Debt Investors Are Blind to the Risks

Investors underestimate the hazards in private debt, according to Pacific Investment Management Co. “There’s a lot of additional credit risk that people are often taking in some of these private situations that you kind of turn a blind eye to,” Christian Stracke, the $2.3 trillion asset manager’s p…

Seix Fears More Zombie Borrower Distress as Interest Rates Stay High

Pressure on highly-indebted companies will intensify as interest rates remain elevated, according to Seix Investment Advisors. “We have a lot of credit zombies — B3/B minus or CCC rated credits — that still have very weak interest coverage, generating zero free cash flow,” George Goudelias, chief i…

Neuberger Sees More Gain Than Pain in Private Debt Market

Despite all the negative headlines around private credit, Neuberger Berman says direct loans pay a lot more than traded debt and barely make a loss. “We pretty consistently see a 200 basis point differential,” Susan Kasser, the gobal investment management firm’s head of private debt, tells Bloomber…

The Long Road to Making Venezuela's Debt and Oil Investable Again

Venezuela debt holders will likely have to wait years to get their money back after regime change in the oil-rich nation, according to Bloomberg Intelligence. “The near-term challenges are nothing short of massive,” says Damian Sassower, chief emerging-markets credit strategist, in this special epi…

Inside ‘the Everything Bubble’ With RBA

Credit is one of many overvalued markets and the technology sector is particularly risky, according to Richard Bernstein Advisors. “We’re kind of in an everything bubble at the moment,” Mike Contopoulos, the firm’s deputy chief investment officer, tells Bloomberg News’ James Crombie and Bloomberg I…

Newfleet Warns of ‘No Free Lunch’ in AI Debt Funding Frenzy

Long-term debt bets on technology companies that are borrowing heavily for AI may end in tears, according to Newfleet Asset Management. “It’s one of the biggest risks out there,” said Dave Albrycht, the multi-sector fixed income manager’s president and chief investment officer. “There’s no free lun…

KKR Is Hunting for Yield in European and Japanese Credit Markets

KKR is looking to Europe and Japan for yield as US debt spreads grind tighter. “Investors are very focused on relative value in a market where there’s not a lot,” Tal Reback, global investment strategist for the firm’s credit and markets business, tells Bloomberg News’ James Crombie and Bloomberg I…