Goldman’s Jonny Fine Sees Bond Issuance Rush Extending
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 Blo…
Pimco Says Private Credit Doesn’t Pay as Hazards Grow
Private debt doesn’t offer high enough returns to justify the growing risks, according to Pimco. “Fundamentals are deteriorating in more levered portions of the credit markets,” said Mohit Mittal, chief investment officer for core strategies at Pimco. “You’re seeing more complacency, so you have to…
Schroders Is Real Estate Bull in Private Debt Rush
Schroders Capital is seeing growing interest in private debt from investors looking to diversify as returns in public markets decline. It’s finding the best relative value in commercial real estate where over-exposed regional banks can no longer lend. “The most interesting opportunity, I think is l…
Blackstone Eyes $30 Trillion Private Credit Bonanza
Blackstone Inc. expects private credit to balloon to $30 trillion in size, fueled by the energy transition, housing and data center lending. “We’re really expanding the opportunity set from quite a narrow part of the market to really a mainstream part,” said Rob Horn, global head of infrastructure …
Moody’s Sees Private Debt Leverage, Transparency Risks
The $1.7 trillion private credit market faces several challenges after years of rapid growth, according Ana Arsov, global head of private credit at Moody’s Ratings. “It’s going to be very important to get more transparency from the banks about is there some kind of synthetic leverage, additional le…
UBS’s Mish Picks Credit Winners, Losers in US Election
Victory for Kamala Harris in the US election would boost the bonds of basic industries, capital goods companies and utilities, according to Matt Mish, head of credit strategy at UBS. “A lot of that we think is tied to the preservation of the inflation reduction act and support of many of the Biden-…
Goldman Sachs Likes the Real Estate Debt Others Fear
As commercial real estate continues to menace banks and investors, Goldman Sachs Asset Management is leaning into the debt. “What we’ve been able to do is find a lot of opportunities in commercial mortgage-backed securities,” Lindsay Rosner, head of multi-sector investing at the company, told Bloom…
Sculptor Sees Opportunity in Busted Capital Structures
Funding companies with unsustainable debt loads has been “the best opportunity in the corporate credit market over the last year or two,” Jimmy Levin, Sculptor Capital Management’s chief investment officer, says in Bloomberg Intelligence’s Credit Edge podcast. Separately, Sculptor expects substanti…
Nochu Losses Pile Up, Asia AT1 Risks; Vedanta Recovery
Norinchukin Bank faces significant losses from the sale of US and European sovereign bonds that tumbled as interest rates rose, and other financial institutions may also be exposed. “The bank is still losing more than a billion dollars a quarter,” says Bloomberg Intelligence senior credit analyst P…
North Wall Sees 25% Returns in Litigation Finance
Lending to law firms against portfolios of legal assets can generate hefty returns, according to North Wall Capital, the London-based credit investor. “We target 25%-plus IRRs, and we have historically outperformed that,” Fabian Chrobog, its chief investment officer and founder, says in Bloomberg I…