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.

<p>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.</p>

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.

<p>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.</p>

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Seix Fears More Zombie Borrower Distress as Interest Rates Stay High

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