TCW’s $160 billion fixed-income group has slashed credit risk to the lowest in three decades amid valuation and contagion concerns. “Look back over the last 30 years — you would not find a period where we had less exposure to both investment-grade and high-yield bonds as we do today,”Bryan Whalen, the group’s chief investment officer, tells Bloomberg News’James Crombie and Bloomberg Intelligence’sJody Lurie in the latest episode of the Credit Edge podcast. They also discuss the potential for distress in debt rated CCC to spread to other parts of the corporate debt market. “That is the weakest borrower, and they cry uncle first,” says Whalen, referring to CCCs. “Make no mistake about it — your single B borrower is going to feel it next, and then your double B borrowers.”

<p>TCW&rsquo;s $160 billion fixed-income group has slashed credit risk to the lowest in three decades amid valuation and contagion concerns. &ldquo;Look back over the last 30 years &mdash; you would not find a period where we had less exposure to both investment-grade and high-yield bonds as we do today,&rdquo;Bryan Whalen, the group&rsquo;s chief investment officer, tells Bloomberg News&rsquo;James Crombie and Bloomberg Intelligence&rsquo;sJody Lurie in the latest episode of the Credit Edge podcast. They also discuss the potential for distress in debt rated CCC to spread to other parts of the corporate debt market. &ldquo;That is the weakest borrower, and they cry uncle first,&rdquo; says Whalen, referring to CCCs. &ldquo;Make no mistake about it &mdash; your single B borrower is going to feel it next, and then your double B borrowers.&rdquo;</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>

The Credit Edge by Bloomberg Intelligence

TCW Chops Credit Risk to Lowest in 30 Years as CCCs ‘Cry Uncle’

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/438e5ddd-4f02-4557-99c7-b4e4012fad94/transcript