Razor-thin debt spreads underpin the global investor push into private markets, which can pay significantly more, according to Blackstone. “We see excess spread in private credit,” Michael Zawadzki, chief investment officer of Blackstone Credit & Insurance, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s David Havens in the latest Credit Edge podcast. “That’s a really attractive thing for our clients around the world,” he adds, marking the premium at 150-200 bps over both traded high-yield and investment-grade debt. The three also discuss the rise of foreign insurers, pension funds and sovereign wealth in private credit, as well as the outlook for data-center finance, leveraged buyouts and default risks.

Razor-thin debt spreads underpin the global investor push into private markets, which can pay significantly more, according to Blackstone. &ldquo;We see excess spread in private credit,&rdquo; Michael Zawadzki, chief investment officer of Blackstone Credit &amp; Insurance, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s David Havens in the latest Credit Edge podcast. &ldquo;That&rsquo;s a really attractive thing for our clients around the world,&rdquo; he adds, marking the premium at 150-200 bps over both traded high-yield and investment-grade debt. The three also discuss the rise of foreign insurers, pension funds and sovereign wealth in private credit, as well as the outlook for data-center finance, leveraged buyouts and default risks.

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.

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.

The Credit Edge by Bloomberg Intelligence

Blackstone Says Private Credit Pays a Lot Better Than Liquid Debt Markets

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Collateralized loan obligations face a second straight year of equity losses, according to Eagle Point Credit Management, a major buyer. “Where we stand right now, it’s certainly possible,” Tom Majewski, the $14 billion private-credit manager’s founder and managing partner, says in this episode of the Credit Edge podcast, when asked about the chance of negative returns. “While there were some credit problems, oddly the bigger issue was the bull market and repricing of loans,” Majewski tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Reto Bachmann. They also discuss software-loan stress, business-development-company turmoil, lower returns in significant risk transfers and how Eagle Point is diversifying into hard assets like midmarket infrastructure lending.

Collateralized loan obligations face a second straight year of equity losses, according to Eagle Point Credit Management, a major buyer. &ldquo;Where we stand right now, it&rsquo;s certainly possible,&rdquo; Tom Majewski, the $14 billion private-credit manager&rsquo;s founder and managing partner, says in this episode of the Credit Edge podcast, when asked about the chance of negative returns. &ldquo;While there were some credit problems, oddly the bigger issue was the bull market and repricing of loans,&rdquo; Majewski tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Reto Bachmann. They also discuss software-loan stress, business-development-company turmoil, lower returns in significant risk transfers and how Eagle Point is diversifying into hard assets like midmarket infrastructure lending.

Bull Run in Loans Slams CLO Equity Buyers, Says Eagle Point’s Majewski

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/195c8f19-fc33-4d13-b39f-b489012c5229/transcript

Sona Asset Management is looking to expand its business in asset-based finance and significant risk transfers as public and private debt markets converge. “The thing that excites us the most is the scope for growth in ABF markets here in Europe,” Henrik Johnsson, the London-based hedge fund’s chief executive officer, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Aidan Cheslin in the latest Credit Edge podcast. “We really like SRTs, although spreads have obviously come in a lot over the last couple of years,” Johnsson adds. They also discuss how to short corporate debt, software-loan distress, secondary sales of private credit assets and investing in the AI boom.

Sona Asset Management is looking to expand its business in asset-based finance and significant risk transfers as public and private debt markets converge. &ldquo;The thing that excites us the most is the scope for growth in ABF markets here in Europe,&rdquo; Henrik Johnsson, the London-based hedge fund&rsquo;s chief executive officer, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Aidan Cheslin in the latest Credit Edge podcast. &ldquo;We really like SRTs, although spreads have obviously come in a lot over the last couple of years,&rdquo; Johnsson adds. They also discuss how to short corporate debt, software-loan distress, secondary sales of private credit assets and investing in the AI boom.

Sona’s CEO Sees ‘Exciting’ Growth in Asset-Based Finance, SRTs

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/ef21fa03-6dd0-4a7d-88bc-b482010814af/transcript

SpaceX bondholders are bolstered by a fat equity cushion, high-grade ratings and a relatively small amount of debt outstanding — but they depend on founder Elon Musk, according to Bloomberg Intelligence. “There’s a huge risk there, and the rating agencies have actually pointed this out in terms of governance,” Robert Schiffman, BI senior technology credit analyst, tells Bloomberg News’ James Crombie in this special episode of the Credit Edge podcast. “You’re absolutely on an Elon Musk trip — his vision and his ability to raise money is a large portion of this company right now,” adds George Ferguson, BI senior equity analyst for aerospace, defense and airlines. The trio also discuss poor secondary performance in SpaceX bonds, relative value compared with the equity, and credit-market risks if AI flops.

SpaceX bondholders are bolstered by a fat equity cushion, high-grade ratings and a relatively small amount of debt outstanding &mdash; but they depend on founder Elon Musk, according to Bloomberg Intelligence. &ldquo;There&rsquo;s a huge risk there, and the rating agencies have actually pointed this out in terms of governance,&rdquo; Robert Schiffman, BI senior technology credit analyst, tells Bloomberg News&rsquo; James Crombie in this special episode of the Credit Edge podcast. &ldquo;You&rsquo;re absolutely on an Elon Musk trip &mdash; his vision and his ability to raise money is a large portion of this company right now,&rdquo; adds George Ferguson, BI senior equity analyst for aerospace, defense and airlines. The trio also discuss poor secondary performance in SpaceX bonds, relative value compared with the equity, and credit-market risks if AI flops.

SpaceX Bondholders Face Huge Key Person Risk on Their Elon Musk Trip

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/b823bb2e-24ed-413c-a371-b47a0128619f/transcript

Blackstone Says Private Credit Pays a Lot Better Than Liquid Debt Markets

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