Borrowers and investors in the $1.4 trillion leveraged loan market are battling over the looming switch to SOFR from Libor, with buyers complaining that they don’t have a say on the new rates being applied. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie is joined by leveraged finance reporter Paula Seligson to detail what the switch means. Bloomberg Intelligence analyst Jaimin Patel also provides a status update on the Latin America energy sector.

Borrowers and investors in the $1.4 trillion leveraged loan market are battling over the looming switch to SOFR from Libor, with buyers complaining that they don’t have a say on the new rates being applied. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie is joined by leveraged finance reporter Paula Seligson to detail what the switch means. Bloomberg Intelligence analyst Jaimin Patel also provides a status update on the Latin America energy sector.

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

Libor-SOFR Switch Angst; LatAm Energy View

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/37687096-833d-40e1-80b0-afb8014e1eb2/transcript

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Systematic credit investing has room to expand into leveraged loans, structured finance and emerging markets, according to Acadian Asset Management. “You could take an issuer approach to do security selection in the leveraged loan market,” Scott Richardson, the $178 billion firm’s director of systematic credit tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Sam Geier in this episode of the Credit Edge podcast. “That could be extended to structured things that sit on top of that, CLOs and the like,” says Richardson, referring to collateralized loan obligations. They also discuss alternative data, private credit and how to build a portfolio “without giving a liver and a kidney to Goldman Sachs along the way.”

Systematic credit investing has room to expand into leveraged loans, structured finance and emerging markets, according to Acadian Asset Management. &ldquo;You could take an issuer approach to do security selection in the leveraged loan market,&rdquo; Scott Richardson, the $178 billion firm&rsquo;s director of systematic credit tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Sam Geier in this episode of the Credit Edge podcast. &ldquo;That could be extended to structured things that sit on top of that, CLOs and the like,&rdquo; says Richardson, referring to collateralized loan obligations. They also discuss alternative data, private credit and how to build a portfolio &ldquo;without giving a liver and a kidney to Goldman Sachs along the way.&rdquo;

Acadian Sees Quants Moving to Loans, CLOs 

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/7dff77e6-c30f-4cf7-beae-b3f6015b8cab/transcript

Mortgage-backed securities look attractive even after government purchases snapped spreads tighter, according to Clark Capital Management. “I don’t think the trade is completely over yet because corporates are even tighter,” Oliver Chambers, head of fixed income for the firm’s separately managed accounts, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Erica Adelberg in this episode of the Credit Edge podcast. “You can go in and clip a 4.5% coupon and have potential for some price appreciation if rates do come down,” says Chambers. They also discuss technology debt risk, the market impact of new leadership at the Federal Reserve and what the central bank would do if there’s a big selloff.

Mortgage-backed securities look attractive even after government purchases snapped spreads tighter, according to Clark Capital Management. &ldquo;I don&rsquo;t think the trade is completely over yet because corporates are even tighter,&rdquo; Oliver Chambers, head of fixed income for the firm&rsquo;s separately managed accounts, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Erica Adelberg in this episode of the Credit Edge podcast. &ldquo;You can go in and clip a 4.5% coupon and have potential for some price appreciation if rates do come down,&rdquo; says Chambers. They also discuss technology debt risk, the market impact of new leadership at the Federal Reserve and what the central bank would do if there&rsquo;s a big selloff.

The Big MBS Trade Has Legs Even After Government Buys, Says Clark

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/11a0158b-3dd2-4f3e-adb7-b3ef01495590/transcript

Technology companies flooding debt markets are just getting started on funding a $4 trillion artificial intelligence boom, according to Bloomberg Intelligence. “This is the tip of the iceberg,” Robert Schiffman, BI’s senior tech credit analyst, tells Bloomberg News’ James Crombie in this special episode of the Credit Edge podcast. “A lot will depend on at what pace industries are embracing AI technologies,” adds Anurag Rana, a senior BI equity analyst who also covers the sector. BI expects AI capital expenditure to exceed $4 trillion in the US through the end of 2030. The trio also discuss the impact of surging bond issuance on credit spreads, the appeal of very long-dated debt in a sector susceptible to disruption and the biggest risks for this year.

Technology companies flooding debt markets are just getting started on funding a $4 trillion artificial intelligence boom, according to Bloomberg Intelligence. &ldquo;This is the tip of the iceberg,&rdquo; Robert Schiffman, BI&rsquo;s senior tech credit analyst, tells Bloomberg News&rsquo; James Crombie in this special episode of the Credit Edge podcast. &ldquo;A lot will depend on at what pace industries are embracing AI technologies,&rdquo; adds Anurag Rana, a senior BI equity analyst who also covers the sector. BI expects AI capital expenditure to exceed $4 trillion in the US through the end of 2030. The trio also discuss the impact of surging bond issuance on credit spreads, the appeal of very long-dated debt in a sector susceptible to disruption and the biggest risks for this year.

 Tech Debt Binge Is Just Getting Started

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/10baaebc-3e94-4117-9128-b3ed01534476/transcript

Libor-SOFR Switch Angst; LatAm Energy View

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