More companies will default on their debt next year because of higher rates and slower earnings, but there won’t be a widespread crisis, says Christopher Sheldon, co-head of credit and markets at KKR. “We don’t think it’s Armageddon,” he tells Bloomberg News senior reporter Lisa Lee and senior editor James Crombie in this episode of the Credit Edge podcast. He expects continued stress in the retail and health-care sectors — and also sees big opportunity in asset-based finance. In addition, Bloomberg Intelligence credit analyst Sharon Chen weighs the outlook for Indian utilities, including relative value in the bonds of Adani. Companies borrowing more cheaply in local markets reduced the need to raise debt abroad. Investors are meanwhile shifting into Indian credit and out of China, which is suffering real estate distress, Chen says.

<p>More companies will default on their debt next year because of higher rates and slower earnings, but there won’t be a widespread crisis, says Christopher Sheldon, co-head of credit and markets at KKR. “We don’t think it’s Armageddon,” he tells Bloomberg News senior reporter Lisa Lee and senior editor James Crombie in this episode of the Credit Edge podcast. He expects continued stress in the retail and health-care sectors — and also sees big opportunity in asset-based finance. In addition, Bloomberg Intelligence credit analyst Sharon Chen weighs the outlook for Indian utilities, including relative value in the bonds of Adani. Companies borrowing more cheaply in local markets reduced the need to raise debt abroad. Investors are meanwhile shifting into Indian credit and out of China, which is suffering real estate distress, Chen says.</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

KKR Sees Credit Stress, Not Armageddon; BI on India

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/768a1760-ca68-4ac5-8f71-b0d2009165c1/transcript

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