Private credit is having a coming-of-age moment, luring investors with double-digit returns and jumbo-sized deals, according to Silas Brown, who covers private credit for Bloomberg News. The $1.5 trillion market isn’t without risk, as borrowers grapple with surging costs and slowing earnings, while investors face liquidity and transparency challenges. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie also talks to Bloomberg Intelligence credit analyst Rena Kwok about the outlook for Asian banks following heightened volatility in the sector. South Korean financial institutions are a weak link amid macroeconomic headwinds and exposure to mortgages.

Private credit is having a coming-of-age moment, luring investors with double-digit returns and jumbo-sized deals, according to Silas Brown, who covers private credit for Bloomberg News. The $1.5 trillion market isn’t without risk, as borrowers grapple with surging costs and slowing earnings, while investors face liquidity and transparency challenges. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie also talks to Bloomberg Intelligence credit analyst Rena Kwok about the outlook for Asian banks following heightened volatility in the sector. South Korean financial institutions are a weak link amid macroeconomic headwinds and exposure to mortgages.

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

Inside the Private Debt Boom; Korea Bank Stress

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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 

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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

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BMO Asset Management, which oversees almost C$300 billion ($218 billion), has cut its junk-bond holdings and moved into safer parts of credit as geopolitical and macroeconomic pressures mount. “We love the movie — we’re still there — but we’re just getting a seat closer to the exit,” Earl Davis, the firm’s head of fixed income and money markets, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Spencer Cutter in the latest Credit Edge podcast. “You’re not getting paid to hold as much risk here,” he says. They also discuss why the financial and energy sectors look attractive, how to play hyperscaler bond issuance and opportunities in Canada’s nascent high-yield market, including debt from commodity and defense companies.

 

BMO Asset Management, which oversees almost C$300 billion ($218 billion), has cut its junk-bond holdings and moved into safer parts of credit as geopolitical and macroeconomic pressures mount. &ldquo;We love the movie &mdash; we&rsquo;re still there &mdash; but we&rsquo;re just getting a seat closer to the exit,&rdquo; Earl Davis, the firm&rsquo;s head of fixed income and money markets, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Spencer Cutter in the latest Credit Edge podcast. &ldquo;You&rsquo;re not getting paid to hold as much risk here,&rdquo; he says. They also discuss why the financial and energy sectors look attractive, how to play hyperscaler bond issuance and opportunities in Canada&rsquo;s nascent high-yield market, including debt from commodity and defense companies.
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BMO Slashes Junk Debt Holdings as Geopolitical, Economic Risks Spread

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Inside the Private Debt Boom; Korea Bank Stress

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