High-grade US corporate bond issuance will rise again in 2025, building on this year’s record-setting pace, according to Goldman Sachs. “There’s a lot of growth in the economy that needs to take place, as well as all of the refi,” Jonny Fine, Goldman’s global head of investment grade debt tells Bloomberg News’ James Crombie and and Bloomberg Intelligence’s Arnold Kakuda in the latest Credit Edge podcast. Refinancing will account for the bulk of the sales, while infrastructure finance and buyouts will boost volume as the economy expands. Fine and Kakuda also discuss the rise of private credit, how regulation and Basel endgame will affect bond markets and the differences between bank financing in the US and Europe, including Additional Tier 1 bonds. 

High-grade US corporate bond issuance will rise again in 2025, building on this year’s record-setting pace, according to Goldman Sachs. “There’s a lot of growth in the economy that needs to take place, as well as all of the refi,” Jonny Fine, Goldman’s global head of investment grade debt tells Bloomberg News’ James Crombie and and Bloomberg Intelligence’s Arnold Kakuda in the latest Credit Edge podcast. Refinancing will account for the bulk of the sales, while infrastructure finance and buyouts will boost volume as the economy expands. Fine and Kakuda also discuss the rise of private credit, how regulation and Basel endgame will affect bond markets and the differences between bank financing in the US and Europe, including Additional Tier 1 bonds.

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.

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Goldman’s Jonny Fine Sees Bond Issuance Rush Extending

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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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Companies need to move fast to refinance leveraged-buyout debt coming due over the next few years, according to ICG. “Folks should start getting ahead of it because the traffic jam may be more the issue than anything,” David Saitowitz, the $126 billion global alternative asset manager’s head of US liquid credit, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Mike Holland in the latest Credit Edge podcast. “That could be the kind of risk event that may push the market wider for a period of time,” he says, referring to credit spreads. They also discuss the AI funding bubble, collateralized loan obligation performance and fallen-angel risk.

Companies need to move fast to refinance leveraged-buyout debt coming due over the next few years, according to ICG. &ldquo;Folks should start getting ahead of it because the traffic jam may be more the issue than anything,&rdquo; David Saitowitz, the $126 billion global alternative asset manager&rsquo;s head of US liquid credit, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Mike Holland in the latest Credit Edge podcast. &ldquo;That could be the kind of risk event that may push the market wider for a period of time,&rdquo; he says, referring to credit spreads. They also discuss the AI funding bubble, collateralized loan obligation performance and fallen-angel risk.

LBO Debt Coming Due Is Next Big Test for Credit Markets, Says ICG

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Goldman’s Jonny Fine Sees Bond Issuance Rush Extending

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