There’s opportunity in collateralized loan obligations, according to BlackRock, the world’s largest money manager. “CLO tranches are probably one of the best relative value picks within the credit markets,” James Turner, the firm’s co-head of European fundamental fixed income investment, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Tim Riminton in the latest Credit Edge podcast. “You are getting a very good spread and deal pickup there,” he adds. They also discuss opportunities in the auto, health care and defense sectors, how to play chemicals industry debt and the outlook for buyouts, defaults and recoveries in leveraged finance.