Opportunities for robust returns in debt markets are the best “in quite some time,” despite rising default risk, says Rob Zable, global head of liquid credit strategies at Blackstone. In this episode of the Credit Edge, Bloomberg News senior reporter Lisa Lee and senior editor James Crombie quiz Zable on his optimistic outlook — and where he sees risk. Plus Bloomberg Intelligence analyst David Havens weighs the outlook for private credit and business development companies. BDCs are well positioned to weather a downturn in the US economy, says Havens.

Opportunities for robust returns in debt markets are the best “in quite some time,” despite rising default risk, says Rob Zable, global head of liquid credit strategies at Blackstone. In this episode of the Credit Edge, Bloomberg News senior reporter Lisa Lee and senior editor James Crombie quiz Zable on his optimistic outlook — and where he sees risk. Plus Bloomberg Intelligence analyst David Havens weighs the outlook for private credit and business development companies. BDCs are well positioned to weather a downturn in the US economy, says Havens.

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 Sees Big Yield Opportunity; BDC Focus

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Consumer discretionary companies are at risk of downgrades and default if the war in the Middle East drags on, according to Bloomberg Intelligence. “We’ll definitely see a bunch of companies that have been holding on finally shake out,” Jody Lurie, a BI credit analyst focused on leisure, travel and lodging, tells Bloomberg News’ James Crombie in this special episode of the Credit Edge podcast. Car rental firms, theme parks and smaller casinos are exposed as rising gas prices crimp consumer spending. The oil rally is a windfall for energy companies, though gains at larger operators may accrue more to equity investors than bondholders. The debt of smaller independent producers may perform better, says Spencer Cutter, who covers the sector for BI.

Consumer discretionary companies are at risk of downgrades and default if the war in the Middle East drags on, according to Bloomberg Intelligence. &ldquo;We&rsquo;ll definitely see a bunch of companies that have been holding on finally shake out,&rdquo; Jody Lurie, a BI credit analyst focused on leisure, travel and lodging, tells Bloomberg News&rsquo; James Crombie in this special episode of the Credit Edge podcast. Car rental firms, theme parks and smaller casinos are exposed as rising gas prices crimp consumer spending. The oil rally is a windfall for energy companies, though gains at larger operators may accrue more to equity investors than bondholders. The debt of smaller independent producers may perform better, says Spencer Cutter, who covers the sector for BI.

How to Position for a Long War in Iran

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Fear of software defaults amid AI disruption creates opportunity for high-yield debt buyers, according to Capital Group, which has $3.2 trillion under management. “Markets are adopting a bit of a shoot first ask questions later strategy when it comes to software,” said Shannon Ward, a fixed income portfolio manager who serves on the firm’s fixed income management committee. “There’s going to be some baby out with the bath water when it comes to the sector — and that means bargains can be had,” she tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Steve Flynn in this episode of the Credit Edge podcast. They also discuss how Paramount Skydance will reshape junk credit, leveraged loan default risks and the broader impact of private market stress.

Fear of software defaults amid AI disruption creates opportunity for high-yield debt buyers, according to Capital Group, which has $3.2 trillion under management. &ldquo;Markets are adopting a bit of a shoot first ask questions later strategy when it comes to software,&rdquo; said Shannon Ward, a fixed income portfolio manager who serves on the firm&rsquo;s fixed income management committee. &ldquo;There&rsquo;s going to be some baby out with the bath water when it comes to the sector &mdash; and that means bargains can be had,&rdquo; she tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Steve Flynn in this episode of the Credit Edge podcast. They also discuss how Paramount Skydance will reshape junk credit, leveraged loan default risks and the broader impact of private market stress.

Capital Group Spies High-Yield Software Opportunity in Debt Meltdown

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Software default rates could hit double digits as AI disruption spreads and loans come due, according to Bain Capital. “We’re going to see real stress,” said Angelo Rufino, the firm’s head of special situations in North America and corporate special situations in Europe. “We will see a full credit cycle as the reckoning really comes to resize capital structures to the earnings power of these business models,” he tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s David Havens in this episode of the Credit Edge podcast. They also discuss investment-grade private credit, data center debt and asset-based finance, including the rise of music-royalty deals.

Software default rates could hit double digits as AI disruption spreads and loans come due, according to Bain Capital. &ldquo;We&rsquo;re going to see real stress,&rdquo; said Angelo Rufino, the firm&rsquo;s head of special situations in North America and corporate special situations in Europe. &ldquo;We will see a full credit cycle as the reckoning really comes to resize capital structures to the earnings power of these business models,&rdquo; he tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s David Havens in this episode of the Credit Edge podcast. They also discuss investment-grade private credit, data center debt and asset-based finance, including the rise of music-royalty deals.

Bain Sees Software Debt Defaults Spiking

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Blackstone Sees Big Yield Opportunity; BDC Focus

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