Bad software loans will cause credit-market trouble that recalls aspects of the global financial crisis, according to American Century Investments. “We call it max uncertainty with max complacency,” says Paul Norris, referring to tight credit spreads, in this episode of the Credit Edge podcast. “What’s interesting to me is the subprime crisis was very similar,” Norris, who leads the $330 billion asset manager’s securitized markets team, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Reto Bachmann. They also discuss growing risks to business development companies and collateralized loan obligations, advantages of public over private asset-backed debt and why residential mortgages are a buy.

 

Bad software loans will cause credit-market trouble that recalls aspects of the global financial crisis, according to American Century Investments. &ldquo;We call it max uncertainty with max complacency,&rdquo; says Paul Norris, referring to tight credit spreads, in this episode of the Credit Edge podcast. &ldquo;What&rsquo;s interesting to me is the subprime crisis was very similar,&rdquo; Norris, who leads the $330 billion asset manager&rsquo;s securitized markets team, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Reto Bachmann. They also discuss growing risks to business development companies and collateralized loan obligations, advantages of public over private asset-backed debt and why residential mortgages are a buy.
&nbsp;

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

Veteran ABS Investor Sees ‘Max Uncertainty With Max Complacency’

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/549b458d-2b35-4198-96fb-b4580149cf37/transcript