The banking crisis has made it harder and more expensive to borrow, tipping some of the riskiest companies into distress. In this episode of the Credit Edge Podcast, Eliza Ronalds-Hannon, who covers credit markets for Bloomberg News in Atlanta, looks at the biggest losers and winners — including Saba Capital Management’s Boaz Weinstein. Bloomberg News senior editor James Crombie also asks Bloomberg Intelligence analyst Spencer Cutter about opportunities in the energy sector. Oil companies that survived prior crises are in good shape to weather the next storm, offering a safe haven. Cutter also weighs the credit impact of Warren Buffett increasing his stake in Occidental Petroleum, a big part of many debt portfolios.

The banking crisis has made it harder and more expensive to borrow, tipping some of the riskiest companies into distress. In this episode of the Credit Edge Podcast, Eliza Ronalds-Hannon, who covers credit markets for Bloomberg News in Atlanta, looks at the biggest losers and winners — including Saba Capital Management’s Boaz Weinstein. Bloomberg News senior editor James Crombie also asks Bloomberg Intelligence analyst Spencer Cutter about opportunities in the energy sector. Oil companies that survived prior crises are in good shape to weather the next storm, offering a safe haven. Cutter also weighs the credit impact of Warren Buffett increasing his stake in Occidental Petroleum, a big part of many debt portfolios.

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

Corporate Distress Spreads; Energy Junk Is a Haven

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/55cde1af-1665-4dbc-b7fc-afd5013fb42d/transcript

Massive borrowing by artificial intelligence companies — some of it to fund their own customers — risks inflating a technology-sector bubble, according to Seaport Research Partners. “Things are going to get crazier,” Jay Goldberg, the firm’s senior analyst for semiconductors and electronics, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Robert Schiffman in the latest Credit Edge podcast. “All this debt is coming on stream, it’s going to amp up things even further — this feels to me like 2007,” Goldberg says. “There are certainly corners of the industry that are prone to blow ups.” They also discuss AI vigilantes, concentration risk and growing anxiety about circular financing.

Massive borrowing by artificial intelligence companies &mdash; some of it to fund their own customers &mdash; risks inflating a technology-sector bubble, according to Seaport Research Partners. &ldquo;Things are going to get crazier,&rdquo; Jay Goldberg, the firm&rsquo;s senior analyst for semiconductors and electronics, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Robert Schiffman in the latest Credit Edge podcast. &ldquo;All this debt is coming on stream, it&rsquo;s going to amp up things even further &mdash; this feels to me like 2007,&rdquo; Goldberg says. &ldquo;There are certainly corners of the industry that are prone to blow ups.&rdquo; They also discuss AI vigilantes, concentration risk and growing anxiety about circular financing.

‘Things Are Going to Get Crazier’: AI Debt Deluge Recalls 2007 Risks

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/4f8e48be-58f1-4103-a9bd-b4b30134770d/transcript

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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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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

Companies need to move fast to refinance leveraged-buyout debt coming due over the next few years, according to ICG. “Folks should start getting ahead of it because the traffic jam may be more the issue than anything,” David Saitowitz, the $126 billion global alternative asset manager’s head of US liquid credit, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Mike Holland in the latest Credit Edge podcast. “That could be the kind of risk event that may push the market wider for a period of time,” he says, referring to credit spreads. They also discuss the AI funding bubble, collateralized loan obligation performance and fallen-angel risk.

Companies need to move fast to refinance leveraged-buyout debt coming due over the next few years, according to ICG. &ldquo;Folks should start getting ahead of it because the traffic jam may be more the issue than anything,&rdquo; David Saitowitz, the $126 billion global alternative asset manager&rsquo;s head of US liquid credit, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Mike Holland in the latest Credit Edge podcast. &ldquo;That could be the kind of risk event that may push the market wider for a period of time,&rdquo; he says, referring to credit spreads. They also discuss the AI funding bubble, collateralized loan obligation performance and fallen-angel risk.

LBO Debt Coming Due Is Next Big Test for Credit Markets, Says ICG

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/e23bb1f0-bd86-4ccc-8ebb-b4a501394cf9/transcript

Corporate Distress Spreads; Energy Junk Is a Haven

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