A retail exodus from business-development companies has dragged their debt to levels that are starting to look attractive, according to MFS Investment Management. “Pressure for redemptions that they’re facing likely ends up creating some opportunities within the public credit markets,” Alex Mackey, the firm’s co-chief investment officer for fixed income, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Robert Schiffman in the latest Credit Edge podcast. “You can line up all the public and the private BDCs and you can go through and see which ones have the leverage metrics that are most attractive,” said Mackey, whose firm oversees $622 billion in assets. They also discuss the deluge of technology sector debt issuance and how wide credit spreads would have to go before they’d look attractive.

<p>A retail exodus from business-development companies has dragged their debt to levels that are starting to look attractive, according to MFS Investment Management. &ldquo;Pressure for redemptions that they&rsquo;re facing likely ends up creating some opportunities within the public credit markets,&rdquo; Alex Mackey, the firm&rsquo;s co-chief investment officer for fixed income, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Robert Schiffman in the latest Credit Edge podcast. &ldquo;You can line up all the public and the private BDCs and you can go through and see which ones have the leverage metrics that are most attractive,&rdquo; said Mackey, whose firm oversees $622 billion in assets. They also discuss the deluge of technology sector debt issuance and how wide credit spreads would have to go before they&rsquo;d look attractive.</p>

The Credit Edge reviews the top credit news of the week and looks at the week ahead, with in-depth research of the most important corporate sectors, trends and themes. Analysis of specific corporate bonds and credit default swaps is backed by Bloomberg Intelligence's robust data sets and indexes.

<p>The Credit Edge reviews the top credit news of the week and looks at the week ahead, with in-depth research of the most important corporate sectors, trends and themes. Analysis of specific corporate bonds and credit default swaps is backed by Bloomberg Intelligence's robust data sets and indexes.</p>

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BDC Bond Bust Creates Opportunity for $622 Billion Asset Manager MFS

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/8de578e8-df56-4b62-af28-b427014a3f38/transcript