New accounting rules have exposed $64 billion in debt held by the largest US businesses, according to Lucca de Paoli, who covers distressed debt for Bloomberg News. This so-called supplier finance can be a safe way to manage cash flow — but it’s also been at the heart of some major corporate collapses, and could fuel ratings downgrades. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie also talks to Bloomberg Intelligence analyst Sharon Chen about the outlook for SoftBank Group Corp. after it was cut deeper into junk. Elsewhere in Japan, Chen examines the refinancing risk at Rakuten Group Inc., which has $5 billion in bonds coming due.

<p>New accounting rules have exposed $64 billion in debt held by the largest US businesses, according to Lucca de Paoli, who covers distressed debt for Bloomberg News. This so-called supplier finance can be a safe way to manage cash flow — but it’s also been at the heart of some major corporate collapses, and could fuel ratings downgrades. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie also talks to Bloomberg Intelligence analyst Sharon Chen about the outlook for SoftBank Group Corp. after it was cut deeper into junk. Elsewhere in Japan, Chen examines the refinancing risk at Rakuten Group Inc., which has $5 billion in bonds coming due.</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

The $64 Billion Hidden Debt Hazard; SoftBank Focus

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/ce00f314-821e-4585-b794-b0140120c866/transcript

Advertisement