China’s local governments are struggling to repay trillions of dollars in infrastructure debt, just as more property developers tip into distress, according to Bloomberg News’ Wei Zhou. A Chinese municipal default would send shock waves through global markets, but Beijing is at pains to avoid the moral hazard of a bailout. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie also asks Bloomberg Intelligence analyst Himanshu Bakshi about the risk to Canadian banks of a spike in mortgage defaults. The main financial institutions can withstand significant real estate stress, though their bonds may come under pressure.

China’s local governments are struggling to repay trillions of dollars in infrastructure debt, just as more property developers tip into distress, according to Bloomberg News’ Wei Zhou. A Chinese municipal default would send shock waves through global markets, but Beijing is at pains to avoid the moral hazard of a bailout. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie also asks Bloomberg Intelligence analyst Himanshu Bakshi about the risk to Canadian banks of a spike in mortgage defaults. The main financial institutions can withstand significant real estate stress, though their bonds may come under pressure.

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

China’s Debt Powder Keg; Canada Faces Mortgage Test

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/3a5a6cd8-2328-43a6-8a71-b045012bee70/transcript

Robust demand from pensions and insurance companies will support corporate debt through macroeconomic headwinds and record supply, according to Goldman Sachs. “Spreads are tight to the prewar levels when the facts on the ground have unquestionably become more challenging,” Amanda Lynam, Goldman’s chief credit strategist, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Robert Schiffman in the latest Credit Edge podcast. “That is this uncomfortable tension that we have in the credit market,” Lynam says. “Sentiment around the yield-based buyer is really in the driver’s seat.” They also discuss the AI funding boom, private-credit risks, CCC underperformance and where to find value in structured products.

Robust demand from pensions and insurance companies will support corporate debt through macroeconomic headwinds and record supply, according to Goldman Sachs. &ldquo;Spreads are tight to the prewar levels when the facts on the ground have unquestionably become more challenging,&rdquo; Amanda Lynam, Goldman&rsquo;s chief credit strategist, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Robert Schiffman in the latest Credit Edge podcast. &ldquo;That is this uncomfortable tension that we have in the credit market,&rdquo; Lynam says. &ldquo;Sentiment around the yield-based buyer is really in the driver&rsquo;s seat.&rdquo; They also discuss the AI funding boom, private-credit risks, CCC underperformance and where to find value in structured products.

Goldman Sachs Sees ‘Uncomfortable Tension’ in Credit Markets

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/81c2dd41-0438-4a69-86ca-b45f014534b2/transcript

Bad software loans will cause credit-market trouble that recalls aspects of the global financial crisis, according to American Century Investments. “We call it max uncertainty with max complacency,” says Paul Norris, referring to tight credit spreads, in this episode of the Credit Edge podcast. “What’s interesting to me is the subprime crisis was very similar,” Norris, who leads the $330 billion asset manager’s securitized markets team, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Reto Bachmann. They also discuss growing risks to business development companies and collateralized loan obligations, advantages of public over private asset-backed debt and why residential mortgages are a buy.

 

Bad software loans will cause credit-market trouble that recalls aspects of the global financial crisis, according to American Century Investments. &ldquo;We call it max uncertainty with max complacency,&rdquo; says Paul Norris, referring to tight credit spreads, in this episode of the Credit Edge podcast. &ldquo;What&rsquo;s interesting to me is the subprime crisis was very similar,&rdquo; Norris, who leads the $330 billion asset manager&rsquo;s securitized markets team, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Reto Bachmann. They also discuss growing risks to business development companies and collateralized loan obligations, advantages of public over private asset-backed debt and why residential mortgages are a buy.
&nbsp;

Veteran ABS Investor Sees ‘Max Uncertainty With Max Complacency’

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/549b458d-2b35-4198-96fb-b4580149cf37/transcript

Blue-chip companies, including hyperscalers, may be jeopardizing their credit ratings by piling on debt, according to Principal Asset Management. “We have seen some downgrades, and I would expect that that would continue as borrowing ramps up,” Mike Goosay, the $600 billion manager’s global head of fixed income, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Julie Hung on the latest Credit Edge podcast. “I don’t think that’ll have a behavioral effect on the way that investors look at the market, nor does it — to date, anyway — change the borrowing costs of those corporates,” he adds. They also discuss the artificial-intelligence funding frenzy, why junk bonds are attractive despite macroeconomic risks and how global government-bond volatility affects demand for credit.

Blue-chip companies, including hyperscalers, may be jeopardizing their credit ratings by piling on debt, according to Principal Asset Management. &ldquo;We have seen some downgrades, and I would expect that that would continue as borrowing ramps up,&rdquo; Mike Goosay, the $600 billion manager&rsquo;s global head of fixed income, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Julie Hung on the latest Credit Edge podcast. &ldquo;I don&rsquo;t think that&rsquo;ll have a behavioral effect on the way that investors look at the market, nor does it &mdash; to date, anyway &mdash; change the borrowing costs of those corporates,&rdquo; he adds. They also discuss the artificial-intelligence funding frenzy, why junk bonds are attractive despite macroeconomic risks and how global government-bond volatility affects demand for credit.

Principal Sees High-Grade Downgrade Risk as Issuance Ramps Up

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/8ab98bd7-6b94-4bff-9401-b450015aad76/transcript

China’s Debt Powder Keg; Canada Faces Mortgage Test

In 1 playlist(s)

The Credit Edge by Bloomberg Intelligence

Social links

Follow podcast

Recent clips