Despite all the negative headlines around private credit, Neuberger Berman says direct loans pay a lot more than traded debt and barely make a loss. “We pretty consistently see a 200 basis point differential,” Susan Kasser, the gobal investment management firm’s head of private debt, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s David Havens in this episode of the Credit Edge podcast. “Our annualized loss rates are one basis point,” she adds. They also discuss how artificial intelligence helps to pinpoint investment opportunities and why private markets will probably continue to get bad press.

Despite all the negative headlines around private credit, Neuberger Berman says direct loans pay a lot more than traded debt and barely make a loss. &ldquo;We pretty consistently see a 200 basis point differential,&rdquo; Susan Kasser, the gobal investment management firm&rsquo;s head of private debt, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s David Havens in this episode of the Credit Edge podcast. &ldquo;Our annualized loss rates are one basis point,&rdquo; she adds. They also discuss how artificial intelligence helps to pinpoint investment opportunities and why private markets will probably continue to get bad press.

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

Neuberger Sees More Gain Than Pain in Private Debt Market

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Investors underestimate the hazards in private debt, according to Pacific Investment Management Co. “There’s a lot of additional credit risk that people are often taking in some of these private situations that you kind of turn a blind eye to,” Christian Stracke, the $2.3 trillion asset manager’s president, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Noel Hebert in this episode of the Credit Edge podcast. “There is a fairly large overhang of problem loans that were made in years earlier this decade that will take years to burn through,” he adds. They also discuss deteriorating debt underwriting standards in the technology sector, Europe’s big defense investment opportunity and the “sell America” trade.

Investors underestimate the hazards in private debt, according to Pacific Investment Management Co. &ldquo;There&rsquo;s a lot of additional credit risk that people are often taking in some of these private situations that you kind of turn a blind eye to,&rdquo; Christian Stracke, the $2.3 trillion asset manager&rsquo;s president, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Noel Hebert in this episode of the Credit Edge podcast. &ldquo;There is a fairly large overhang of problem loans that were made in years earlier this decade that will take years to burn through,&rdquo; he adds. They also discuss deteriorating debt underwriting standards in the technology sector, Europe&rsquo;s big defense investment opportunity and the &ldquo;sell America&rdquo; trade.

Pimco’s President Says Private Debt Investors Are Blind to the Risks 

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Pressure on highly-indebted companies will intensify as interest rates remain elevated, according to Seix Investment Advisors. “We have a lot of credit zombies — B3/B minus or CCC rated credits — that still have very weak interest coverage, generating zero free cash flow,” George Goudelias, chief investment officer of the firm’s leveraged finance platform, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Jean-Yves Coupin in this episode of the Credit Edge podcast. “There are mine fields to avoid in this market,” he adds. They also discuss the impact of private credit on public leveraged finance, why Seix is bearish on technology and how rising “sell America” sentiment could affect corporate debt.

Pressure on highly-indebted companies will intensify as interest rates remain elevated, according to Seix Investment Advisors. &ldquo;We have a lot of credit zombies &mdash; B3/B minus or CCC rated credits &mdash; that still have very weak interest coverage, generating zero free cash flow,&rdquo; George Goudelias, chief investment officer of the firm&rsquo;s leveraged finance platform, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Jean-Yves Coupin in this episode of the Credit Edge podcast. &ldquo;There are mine fields to avoid in this market,&rdquo; he adds. They also discuss the impact of private credit on public leveraged finance, why Seix is bearish on technology and how rising &ldquo;sell America&rdquo; sentiment could affect corporate debt.

Seix Fears More Zombie Borrower Distress as Interest Rates Stay High

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/2f9374cc-3c3c-43a8-a8df-b3da014db8c0/transcript

Venezuela debt holders will likely have to wait years to get their money back after regime change in the oil-rich nation, according to Bloomberg Intelligence. “The near-term challenges are nothing short of massive,” says Damian Sassower, chief emerging-markets credit strategist, in this special episode of the Credit Edge podcast. “I think the rest of this year is spent trying to figure out how to make Venezuela investable,” said Spencer Cutter, who covers US energy producers for BI. They also discuss opportunities and risks for American and Canadian oil companies, the sale of Citgo Petroleum and the “domino effect” on China.

Venezuela debt holders will likely have to wait years to get their money back after regime change in the oil-rich nation, according to Bloomberg Intelligence. &ldquo;The near-term challenges are nothing short of massive,&rdquo; says Damian Sassower, chief emerging-markets credit strategist, in this special episode of the Credit Edge podcast. &ldquo;I think the rest of this year is spent trying to figure out how to make Venezuela investable,&rdquo; said Spencer Cutter, who covers US energy producers for BI. They also discuss opportunities and risks for American and Canadian oil companies, the sale of Citgo Petroleum and the &ldquo;domino effect&rdquo; on China.

The Long Road to Making Venezuela's Debt and Oil Investable Again

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/7bd62c90-f545-4d42-91cc-b3d1010e3690/transcript

Neuberger Sees More Gain Than Pain in Private Debt Market

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