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BMO Asset Management, which oversees almost C$300 billion ($218 billion), has cut its junk-bond holdings and moved into safer parts of credit as geopolitical and macroeconomic pressures mount. “We love the movie — we’re still there — but we’re just getting a seat closer to the exit,” Earl Davis, the firm’s head of fixed income and money markets, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Spencer Cutter in the latest Credit Edge podcast. “You’re not getting paid to hold as much risk here,” he says. They also discuss why the financial and energy sectors look attractive, how to play hyperscaler bond issuance and opportunities in Canada’s nascent high-yield market, including debt from commodity and defense companies.

 

BMO Asset Management, which oversees almost C$300 billion ($218 billion), has cut its junk-bond holdings and moved into safer parts of credit as geopolitical and macroeconomic pressures mount. &ldquo;We love the movie &mdash; we&rsquo;re still there &mdash; but we&rsquo;re just getting a seat closer to the exit,&rdquo; Earl Davis, the firm&rsquo;s head of fixed income and money markets, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Spencer Cutter in the latest Credit Edge podcast. &ldquo;You&rsquo;re not getting paid to hold as much risk here,&rdquo; he says. They also discuss why the financial and energy sectors look attractive, how to play hyperscaler bond issuance and opportunities in Canada&rsquo;s nascent high-yield market, including debt from commodity and defense companies.
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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

BMO Slashes Junk Debt Holdings as Geopolitical, Economic Risks Spread

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/00d20ad1-ff47-460b-9fce-b4ac0149babc/transcript