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.

<p>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.</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

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