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 substantial growth in asset-based finance, where Levin sees double-digit returns, he tells Bloomberg News’ James Crombie and Irene Garcia Perez, and BI credit analyst Stephane Kovatchev. Also in this episode, Levin and Kovatchev discuss the outlook for rates, the resilience of US consumers and positioning in the debt of cyclical industrial companies. 

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 substantial growth in asset-based finance, where Levin sees double-digit returns, he tells Bloomberg News’ James Crombie and Irene Garcia Perez, and BI credit analyst Stephane Kovatchev. Also in this episode, Levin and Kovatchev discuss the outlook for rates, the resilience of US consumers and positioning in the debt of cyclical industrial companies.

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

Sculptor Sees Opportunity in Busted Capital Structures

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/b00fa31b-9723-4539-9c17-b1e2010661b8/transcript

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A bank retreat from private credit piles pressure on business development companies already reeling from a wave of redemptions, according to SLR Investment Corp. “You’re starting to see banks get nervous and start to pull back,” the BDC’s co-Chief Executive Officer Michael Gross tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Arnold Kakuda in this episode of the Credit Edge podcast. “It’s going to increase people’s cost of capital, which will make it harder for people to invest efficiently,” said Gross, who led Apollo Investment Corporation, part of the early wave of BDCs, before starting SLR in 2006. They also discuss software distress, how to avoid fraud and why BDCs still work for retail investors.

A bank retreat from private credit piles pressure on business development companies already reeling from a wave of redemptions, according to SLR Investment Corp. &ldquo;You&rsquo;re starting to see banks get nervous and start to pull back,&rdquo; the BDC&rsquo;s co-Chief Executive Officer Michael Gross tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Arnold Kakuda in this episode of the Credit Edge podcast. &ldquo;It&rsquo;s going to increase people&rsquo;s cost of capital, which will make it harder for people to invest efficiently,&rdquo; said Gross, who led Apollo Investment Corporation, part of the early wave of BDCs, before starting SLR in 2006. They also discuss software distress, how to avoid fraud and why BDCs still work for retail investors.

BDC Veteran Expects Private Credit Fund Stress as Banks Pull Back

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/c65a381f-5eee-49ae-92eb-b412013d9236/transcript

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

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/5bd21d82-f769-4633-822a-b40b012b0233/transcript

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

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/16897e62-69e7-4bec-ba01-b40901498607/transcript

Sculptor Sees Opportunity in Busted Capital Structures

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