More private investors in distressed companies are looking to replace directors and take control, according to Kirkland & Ellis. “It’s a very important remedy — it candidly drives a lot of negotiation when things are distressed,” H.T. Flanagan, a debt finance partner at the law firm, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s David Havens in the latest Credit Edge podcast. “I have seen folks explore this with greater frequency and execute it with greater frequency,” says Flanagan, who advises private debt funds and alternative lenders. They also discuss the outlook for liability management exercises, hybrid capital solutions and opportunities in defense, aerospace and financial services.

More private investors in distressed companies are looking to replace directors and take control, according to Kirkland &amp; Ellis. &ldquo;It&rsquo;s a very important remedy &mdash; it candidly drives a lot of negotiation when things are distressed,&rdquo; H.T. Flanagan, a debt finance partner at the law firm, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s David Havens in the latest Credit Edge podcast. &ldquo;I have seen folks explore this with greater frequency and execute it with greater frequency,&rdquo; says Flanagan, who advises private debt funds and alternative lenders. They also discuss the outlook for liability management exercises, hybrid capital solutions and opportunities in defense, aerospace and financial services.

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

Kirkland & Ellis Sees More Distressed Lenders Flipping Company Boards 

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Magnetar Capital is scouring a $600 billion pile of troubled corporate bonds and loans for value as much of the debt comes due. “Yesterday’s buyout boom is today’s credit opportunity,” Austin Camporin, head of special situations at the $17 billion alternative asset manager, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Negisa Balluku in the latest Credit Edge podcast. “It’s those small firms that incurred debt in the zero interest rate environment, primarily in the broadly syndicated loan market, that are obviously having a harder time,” Camporin says. They also discuss private credit risk and investment opportunities in software, healthcare services, building materials and packaging.

Magnetar Capital is scouring a $600 billion pile of troubled corporate bonds and loans for value as much of the debt comes due. &ldquo;Yesterday&rsquo;s buyout boom is today&rsquo;s credit opportunity,&rdquo; Austin Camporin, head of special situations at the $17 billion alternative asset manager, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Negisa Balluku in the latest Credit Edge podcast. &ldquo;It&rsquo;s those small firms that incurred debt in the zero interest rate environment, primarily in the broadly syndicated loan market, that are obviously having a harder time,&rdquo; Camporin says. They also discuss private credit risk and investment opportunities in software, healthcare services, building materials and packaging.

Magnetar Scours $600 Billion Stressed Debt Pile for Bond, Loan Value

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/d3e1b5c0-d5d2-4b3c-9b73-b4cf0149e262/transcript

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Lumen Technologies is reducing leverage and reinventing itself as an AI play after completing one of the biggest-ever out-of-court debt restructurings. “We had to keep as many winners as possible if we were going to be able to pull this off,” Chris Stansbury, the company’s president and chief financial officer, tells Bloomberg News’ James Crombie and Reshmi Basu and Bloomberg Intelligence’s Phil Brendel in the latest Credit Edge podcast. “It was a moonshot and it worked,” Stansbury adds. They also discuss capital-expenditure plans, a copper-scrap opportunity worth “hundreds of millions of dollars,” and Lumen’s exposure to the AI backlash.

 

Lumen Technologies is reducing leverage and reinventing itself as an AI play after completing one of the biggest-ever out-of-court debt restructurings. &ldquo;We had to keep as many winners as possible if we were going to be able to pull this off,&rdquo; Chris Stansbury, the company&rsquo;s president and chief financial officer, tells Bloomberg News&rsquo; James Crombie and Reshmi Basu and Bloomberg Intelligence&rsquo;s Phil Brendel in the latest Credit Edge podcast. &ldquo;It was a moonshot and it worked,&rdquo; Stansbury adds. They also discuss capital-expenditure plans, a copper-scrap opportunity worth &ldquo;hundreds of millions of dollars,&rdquo; and Lumen&rsquo;s exposure to the AI backlash.
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Lumen’s CFO Looks Ahead After ‘Moonshot’ Debt Deal That Worked

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/49cf64e2-c110-420f-a8da-b4c8014966d6/transcript

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.

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.

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

Kirkland & Ellis Sees More Distressed Lenders Flipping Company Boards

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