Debt spreads are set to tighten further as demand for yield rises and net supply remains constrained, according to First Eagle Alternative Credit, which is cautious about the year ahead. “Stay conservative — that’s the mantra that we’re operating under,” said Jim Fellows, the firm’s co-president and chief investment officer, referring to leveraged loans, private credit and high-yield bonds. “You don’t see a lot of screaming value,” he tells Bloomberg News’ James Crombie and Bloomberg Intelligence senior credit analyst David Havens in the latest Credit Edge podcast. Havens and Fellows also discuss opportunity in asset-based lending, middle-market loan pricing and covenant trends, as well as the outlook for buyout finance and private credit defaults.

<p>Debt spreads are set to tighten further as demand for yield rises and net supply remains constrained, according to First Eagle Alternative Credit, which is cautious about the year ahead. &ldquo;Stay conservative &mdash; that&rsquo;s the mantra that we&rsquo;re operating under,&rdquo; said Jim Fellows, the firm&rsquo;s co-president and chief investment officer, referring to leveraged loans, private credit and high-yield bonds. &ldquo;You don&rsquo;t see a lot of screaming value,&rdquo; he tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence senior credit analyst David Havens in the latest Credit Edge podcast. Havens and Fellows also discuss opportunity in asset-based lending, middle-market loan pricing and covenant trends, as well as the outlook for buyout finance and private credit defaults.</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

First Eagle Plays Safe as Credit Spreads Get Squeezed

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