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Private credit’s rapid growth and lack of transparency are concerns to be monitored as funding costs jump, says Fraser Lundie, head of fixed income at Federated Hermes in London.  Steep rises in interest payments for lower-rated companies are “not going to be absorbed cleanly and easily,” he tells Bloomberg News senior reporter Lisa Lee and senior editor James Crombie. “The lack of look through is something that I find it quite difficult to have conviction on,” adds Lundie, referring to private debt. Federated Hermes manages about $715 billion in assets. Also in this episode of Credit Edge, Bloomberg Intelligence analyst Pri de Silva analyzes the additional tier 1 bond market, which is staging a comeback and offering double-digit returns. More issuance from Japanese banks provides opportunities for diversification, he adds. 

<p>Private credit’s rapid growth and lack of transparency are concerns to be monitored as funding costs jump, says Fraser Lundie, head of fixed income at Federated Hermes in London.  Steep rises in interest payments for lower-rated companies are “not going to be absorbed cleanly and easily,” he tells Bloomberg News senior reporter Lisa Lee and senior editor James Crombie. “The lack of look through is something that I find it quite difficult to have conviction on,” adds Lundie, referring to private debt. Federated Hermes manages about $715 billion in assets. Also in this episode of Credit Edge, Bloomberg Intelligence analyst Pri de Silva analyzes the additional tier 1 bond market, which is staging a comeback and offering double-digit returns. More issuance from Japanese banks provides opportunities for diversification, he adds. </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

Federated Sees Private Debt Red Flags; AT1 Boom

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/2dca4908-066e-4118-8f61-b0bc012a9bb8/transcript

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