Investors in troubled company debt are excited about the opportunities in banks, retail and health care as rates grind higher and the economy sputters, with one fund making $30 million on a single distressed debt trade. Consumers have been resilient but cracks are spreading, while a shift to electric vehicles adds stress in autos, according to Erin Hudson, who covers distressed debt for Bloomberg News.

In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie also talks to Bloomberg Intelligence analyst Paul Vickars about European energy and utilities. High oil prices have created a windfall and the region is less exposed to volatility from Russia, Vickars says. The UK’s SSE is one to watch as companies sell more green, sustainability and transition bonds.