Private-debt firms are set to consolidate as larger companies dominate deal flow, according to Marc Chowrimootoo, portfolio manager at Hayfin Capital Management. “We’re seeing a concentration within fewer hands,” Chowrimootoo tells Bloomberg News’ Lisa Lee and James Crombie and Bloomberg Intelligence’s Julie Hung in the latest Credit Edge podcast. “That trend is going to continue.” He identifies debt refinancing as the big opportunity for private lenders in 2024. Hayfin likes the health-care and software sectors, while avoiding smaller borrowers that are struggling with higher rates. In addition, BI’s Hung weighs the impact on food and drink companies of weight-loss drugs like Ozempic.

Private-debt firms are set to consolidate as larger companies dominate deal flow, according to Marc Chowrimootoo, portfolio manager at Hayfin Capital Management. “We’re seeing a concentration within fewer hands,” Chowrimootoo tells Bloomberg News’ Lisa Lee and James Crombie and Bloomberg Intelligence’s Julie Hung in the latest Credit Edge podcast. “That trend is going to continue.” He identifies debt refinancing as the big opportunity for private lenders in 2024. Hayfin likes the health-care and software sectors, while avoiding smaller borrowers that are struggling with higher rates. In addition, BI’s Hung weighs the impact on food and drink companies of weight-loss drugs like Ozempic.

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

Hayfin Expects Private-Debt M&A; BI on Ozempic Risks

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/453aa889-1628-4d29-babf-b0f4015a3e6d/transcript

Private lenders are going back to basics as debt trouble spreads, market participants tell Bloomberg News’ James Crombie in this special episode of the Credit Edge podcast. “Boring is beautiful, boring is better right now,” says Christina Lee, managing director at Oaktree Capital Management. The podcast also explores AI debt risks, software distress, how tight bond spreads can go and the state of US consumers with the following guests: Matt Brill, head of North America investment-grade credit at Invesco; Anish Shah, global head of debt capital markets at Morgan Stanley; Lotfi Karoui, multi-asset credit strategist at Pimco; Jody Lurie, Bloomberg Intelligence senior credit analyst; Na Wei, global head of leveraged finance at Barclays; Sheel Patel, head of Mayer Brown’s private credit practice in New York; Shalini Sriram, Third Point’s head of structured credit; and Scott Goodwin, co-founder of Diameter Capital Partners. Interviews were recorded June 3 at Bloomberg’s Global Credit Forum in New York.

 

Private lenders are going back to basics as debt trouble spreads, market participants tell Bloomberg News&rsquo; James Crombie in this special episode of the Credit Edge podcast. &ldquo;Boring is beautiful, boring is better right now,&rdquo; says Christina Lee, managing director at Oaktree Capital Management. The podcast also explores AI debt risks, software distress, how tight bond spreads can go and the state of US consumers with the following guests: Matt Brill, head of North America investment-grade credit at Invesco; Anish Shah, global head of debt capital markets at Morgan Stanley; Lotfi Karoui, multi-asset credit strategist at Pimco; Jody Lurie, Bloomberg Intelligence senior credit analyst; Na Wei, global head of leveraged finance at Barclays; Sheel Patel, head of Mayer Brown&rsquo;s private credit practice in New York; Shalini Sriram, Third Point&rsquo;s head of structured credit; and Scott Goodwin, co-founder of Diameter Capital Partners. Interviews were recorded June 3 at Bloomberg&rsquo;s Global Credit Forum in New York.
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Oaktree Says Boring is Beautiful In Dicey Private Credit Market

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/17028859-4456-4c46-8fcf-b4660149dfb2/transcript

Robust demand from pensions and insurance companies will support corporate debt through macroeconomic headwinds and record supply, according to Goldman Sachs. “Spreads are tight to the prewar levels when the facts on the ground have unquestionably become more challenging,” Amanda Lynam, Goldman’s chief credit strategist, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Robert Schiffman in the latest Credit Edge podcast. “That is this uncomfortable tension that we have in the credit market,” Lynam says. “Sentiment around the yield-based buyer is really in the driver’s seat.” They also discuss the AI funding boom, private-credit risks, CCC underperformance and where to find value in structured products.

Robust demand from pensions and insurance companies will support corporate debt through macroeconomic headwinds and record supply, according to Goldman Sachs. &ldquo;Spreads are tight to the prewar levels when the facts on the ground have unquestionably become more challenging,&rdquo; Amanda Lynam, Goldman&rsquo;s chief credit strategist, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Robert Schiffman in the latest Credit Edge podcast. &ldquo;That is this uncomfortable tension that we have in the credit market,&rdquo; Lynam says. &ldquo;Sentiment around the yield-based buyer is really in the driver&rsquo;s seat.&rdquo; They also discuss the AI funding boom, private-credit risks, CCC underperformance and where to find value in structured products.

Goldman Sachs Sees ‘Uncomfortable Tension’ in Credit Markets

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/81c2dd41-0438-4a69-86ca-b45f014534b2/transcript

Bad software loans will cause credit-market trouble that recalls aspects of the global financial crisis, according to American Century Investments. “We call it max uncertainty with max complacency,” says Paul Norris, referring to tight credit spreads, in this episode of the Credit Edge podcast. “What’s interesting to me is the subprime crisis was very similar,” Norris, who leads the $330 billion asset manager’s securitized markets team, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Reto Bachmann. They also discuss growing risks to business development companies and collateralized loan obligations, advantages of public over private asset-backed debt and why residential mortgages are a buy.

 

Bad software loans will cause credit-market trouble that recalls aspects of the global financial crisis, according to American Century Investments. &ldquo;We call it max uncertainty with max complacency,&rdquo; says Paul Norris, referring to tight credit spreads, in this episode of the Credit Edge podcast. &ldquo;What&rsquo;s interesting to me is the subprime crisis was very similar,&rdquo; Norris, who leads the $330 billion asset manager&rsquo;s securitized markets team, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Reto Bachmann. They also discuss growing risks to business development companies and collateralized loan obligations, advantages of public over private asset-backed debt and why residential mortgages are a buy.
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Veteran ABS Investor Sees ‘Max Uncertainty With Max Complacency’

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/549b458d-2b35-4198-96fb-b4580149cf37/transcript

Hayfin Expects Private-Debt M&A; BI on Ozempic Risks

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