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The plunge in software debt creates opportunities to buy cheap loans from companies that will survive AI disruption, according to Permira Credit. “The market has overreacted,” Ian Jackson, the firm’s head of strategic opportunities, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Tolu Alamutu in the latest Credit Edge podcast. “The broad selloff in software has been such an interesting place for us because a lot of these names, we just don’t believe will go through restructuring,” says Jackson, whose company lends to technology companies. They also discuss fraud, private market stress, relative value in Europe vs. US credit and the outlook for collateralized loan obligations.

The plunge in software debt creates opportunities to buy cheap loans from companies that will survive AI disruption, according to Permira Credit. &ldquo;The market has overreacted,&rdquo; Ian Jackson, the firm&rsquo;s head of strategic opportunities, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Tolu Alamutu in the latest Credit Edge podcast. &ldquo;The broad selloff in software has been such an interesting place for us because a lot of these names, we just don&rsquo;t believe will go through restructuring,&rdquo; says Jackson, whose company lends to technology companies. They also discuss fraud, private market stress, relative value in Europe vs. US credit and the outlook for collateralized loan obligations.

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

European PE Giant Permira Looks to Buy Beaten Up Software Loans

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/60b45911-8f1d-42a9-ab2e-b41900f4820c/transcript

High global government yields are a growing threat to corporate debt markets, according to London-based hedge fund Andromeda Capital Management. “You either have to let long-term yields go up — and with that you can cause a credit crunch, especially with all the AI borrowing that’s happened — or you let the currency depreciate,” Alberto Gallo, the firm’s chief investment officer and co-founder, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Stephane Kovatchev in the latest Credit Edge podcast. “We might have already hit some icebergs with government bond yields going so high,” says Gallo, who compares the situation to the Titanic disaster. They also discuss winners and losers from the artificial intelligence boom, private credit contagion and why Japanese inflation matters.

High global government yields are a growing threat to corporate debt markets, according to London-based hedge fund Andromeda Capital Management. &ldquo;You either have to let long-term yields go up &mdash; and with that you can cause a credit crunch, especially with all the AI borrowing that&rsquo;s happened &mdash; or you let the currency depreciate,&rdquo; Alberto Gallo, the firm&rsquo;s chief investment officer and co-founder, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Stephane Kovatchev in the latest Credit Edge podcast. &ldquo;We might have already hit some icebergs with government bond yields going so high,&rdquo; says Gallo, who compares the situation to the Titanic disaster. They also discuss winners and losers from the artificial intelligence boom, private credit contagion and why Japanese inflation matters.

Hedge Fund Andromeda Warns of ‘Titanic’ Debt Disaster as Yields Soar

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/13324dee-91c7-423d-a521-b4c101382449/transcript

Columbia Threadneedle is looking to outperform by buying into the flood of debt from companies building artificial intelligence infrastructure. “It’s really the best place to try to find some volatility and some alpha opportunities here, as long as you can remain nimble,” Tom Murphy, the $715 billion manager’s head of investment-grade credit, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s David Havens in the latest Credit Edge podcast. “If we start to see all of this investment turn into cash flow, it could really be tremendous,” he says. They also discuss fundamental and technical credit market indicators, the September issuance rush and relative value in financial sector bonds.

Columbia Threadneedle is looking to outperform by buying into the flood of debt from companies building artificial intelligence infrastructure. &ldquo;It&rsquo;s really the best place to try to find some volatility and some alpha opportunities here, as long as you can remain nimble,&rdquo; Tom Murphy, the $715 billion manager&rsquo;s head of investment-grade credit, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s David Havens in the latest Credit Edge podcast. &ldquo;If we start to see all of this investment turn into cash flow, it could really be tremendous,&rdquo; he says. They also discuss fundamental and technical credit market indicators, the September issuance rush and relative value in financial sector bonds.

Columbia Threadneedle Scans AI Debt Rush for Alpha Opportunity 

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/c34cb447-3211-4e54-9d42-b4ba011c59e3/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

European PE Giant Permira Looks to Buy Beaten Up Software Loans

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