US companies with $770 billion in loans are hitting a wall as interest rates stay elevated, according to Davidson Kempner. “We’re in year three of what’s already the longest default cycle in 20 years,” Suzy Gibbons, the hedge fund’s head of research, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s David Havens in the latest Credit Edge podcast. “About a third of the market is stressed based on fundamental credit data,” she said. They also discuss liability management exercises, software defaults, distressed-debt returns and the broader impact of leveraged-debt stress on markets.

<p>US companies with $770 billion in loans are hitting a wall as interest rates stay elevated, according to Davidson Kempner. &ldquo;We&rsquo;re in year three of what&rsquo;s already the longest default cycle in 20 years,&rdquo; Suzy Gibbons, the hedge fund&rsquo;s head of research, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s David Havens in the latest Credit Edge podcast. &ldquo;About a third of the market is stressed based on fundamental credit data,&rdquo; she said. They also discuss liability management exercises, software defaults, distressed-debt returns and the broader impact of leveraged-debt stress on markets.</p>

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.

<p>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.</p>

The Credit Edge by Bloomberg Intelligence

Davidson Kempner Sees a $770 Billion Stressed Debt Opportunity

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