Private credit’s double-digit returns are here to stay, even as interest rates drop and risks rise, according to Arcmont Asset Management. “Our spreads have been very consistent for a decade,” says Mattis Poetter, the European private debt firm’s co-chief investment officer, in the latest Credit Edge podcast from Bloomberg Intelligence. “I think that’s sustainable,” he tells Bloomberg News’ James Crombie and Kat Hidalgo, and Bloomberg Intelligence Senior Credit Analyst Robert Schiffman. In addition, Arcmont’s co-CIO discusses private debt defaults, pay-in-kind structures, debt-for-equity swaps and opportunities in net-asset-value financing. Also in this episode, Poetter and Schiffman weigh market dislocations and opportunities for rescue financing. 

Private credit’s double-digit returns are here to stay, even as interest rates drop and risks rise, according to Arcmont Asset Management. “Our spreads have been very consistent for a decade,” says Mattis Poetter, the European private debt firm’s co-chief investment officer, in the latest Credit Edge podcast from Bloomberg Intelligence. “I think that’s sustainable,” he tells Bloomberg News’ James Crombie and Kat Hidalgo, and Bloomberg Intelligence Senior Credit Analyst Robert Schiffman. In addition, Arcmont’s co-CIO discusses private debt defaults, pay-in-kind structures, debt-for-equity swaps and opportunities in net-asset-value financing. Also in this episode, Poetter and Schiffman weigh market dislocations and opportunities for rescue financing.

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

Private Lender Arcmont Says High Returns Here to Stay

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Third Point is getting ready to scoop up credit assets that others have to sell to raise liquidity as cracks in the market spread. “This is probably one of the most exciting times to be a credit investor,” Shalini Sriram, the hedge fund’s head of structured credit, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Erica Adelberg in this episode of the Credit Edge podcast. “You are seeing people trying to sell parts of the portfolio that they can,” says Sriram, who sits on the fund’s risk committee. They also discuss residential and commercial mortgage-backed securities, consumer finance and collateralized loan obligations.

Third Point is getting ready to scoop up credit assets that others have to sell to raise liquidity as cracks in the market spread. &ldquo;This is probably one of the most exciting times to be a credit investor,&rdquo; Shalini Sriram, the hedge fund&rsquo;s head of structured credit, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Erica Adelberg in this episode of the Credit Edge podcast. &ldquo;You are seeing people trying to sell parts of the portfolio that they can,&rdquo; says Sriram, who sits on the fund&rsquo;s risk committee. They also discuss residential and commercial mortgage-backed securities, consumer finance and collateralized loan obligations.

Third Point Is Looking to Buy as Others Sell Amid Rising Turbulence

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Consumer discretionary companies are at risk of downgrades and default if the war in the Middle East drags on, according to Bloomberg Intelligence. “We’ll definitely see a bunch of companies that have been holding on finally shake out,” Jody Lurie, a BI credit analyst focused on leisure, travel and lodging, tells Bloomberg News’ James Crombie in this special episode of the Credit Edge podcast. Car rental firms, theme parks and smaller casinos are exposed as rising gas prices crimp consumer spending. The oil rally is a windfall for energy companies, though gains at larger operators may accrue more to equity investors than bondholders. The debt of smaller independent producers may perform better, says Spencer Cutter, who covers the sector for BI.

Consumer discretionary companies are at risk of downgrades and default if the war in the Middle East drags on, according to Bloomberg Intelligence. &ldquo;We&rsquo;ll definitely see a bunch of companies that have been holding on finally shake out,&rdquo; Jody Lurie, a BI credit analyst focused on leisure, travel and lodging, tells Bloomberg News&rsquo; James Crombie in this special episode of the Credit Edge podcast. Car rental firms, theme parks and smaller casinos are exposed as rising gas prices crimp consumer spending. The oil rally is a windfall for energy companies, though gains at larger operators may accrue more to equity investors than bondholders. The debt of smaller independent producers may perform better, says Spencer Cutter, who covers the sector for BI.

How to Position for a Long War in Iran

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Fear of software defaults amid AI disruption creates opportunity for high-yield debt buyers, according to Capital Group, which has $3.2 trillion under management. “Markets are adopting a bit of a shoot first ask questions later strategy when it comes to software,” said Shannon Ward, a fixed income portfolio manager who serves on the firm’s fixed income management committee. “There’s going to be some baby out with the bath water when it comes to the sector — and that means bargains can be had,” she tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Steve Flynn in this episode of the Credit Edge podcast. They also discuss how Paramount Skydance will reshape junk credit, leveraged loan default risks and the broader impact of private market stress.

Fear of software defaults amid AI disruption creates opportunity for high-yield debt buyers, according to Capital Group, which has $3.2 trillion under management. &ldquo;Markets are adopting a bit of a shoot first ask questions later strategy when it comes to software,&rdquo; said Shannon Ward, a fixed income portfolio manager who serves on the firm&rsquo;s fixed income management committee. &ldquo;There&rsquo;s going to be some baby out with the bath water when it comes to the sector &mdash; and that means bargains can be had,&rdquo; she tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Steve Flynn in this episode of the Credit Edge podcast. They also discuss how Paramount Skydance will reshape junk credit, leveraged loan default risks and the broader impact of private market stress.

Capital Group Spies High-Yield Software Opportunity in Debt Meltdown

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/916c020f-09cc-49c4-ad7c-b40401472654/transcript

Private Lender Arcmont Says High Returns Here to Stay

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