The Credit Edge by Bloomberg Intelligence

Companies that borrowed from private markets are struggling to pay as interest rates surge, according to Bloomberg News’ Kat Hidalgo. There’s more distress to come amid record levels of fundraising and ever-increasing deal sizes, Hidalgo says. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie also asks Bloomberg Intelligence analyst Andrew Chan about the brewin...

Companies with floating-rate debt are feeling the pain of higher interest costs as leveraged loan defaults outpace that of junk bonds, Bloomberg News’ Jill Shah , says. The one-year default rate for US loan borrowers has soared to 4%, an analysis by Morgan Stanley shows. Also on this episode of the Credit Edge podcast, Bloomberg News corporate finance reporter Olivia Raimonde chats with Bloomberg...

Yellow — the bankrupt trucking firm — is deciding between competing financing packages from lenders including Apollo, Bloomberg News’ Amelia Pollard says. The company owes the US government more than $700 million from a pandemic-era loan. Also on this episode of the Credit Edge podcast, Bloomberg News corporate finance reporter Olivia Raimonde chats with Bloomberg Intelligence analyst Julie Hung a...

Leveraged loans are enjoying a euphoric risk-on period of excess demand for limited supply, according to Bloomberg News’ Jeannine Amodeo. Banks offloading hung buyout debt at a steep discount could send prices back down but there are reasons to be bullish on the market for the rest of this year, Amodeo says. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie als...

Carvana is a rare case of lenders working together to agree restructuring terms and could be a blueprint for other distressed debt situations, according to Bloomberg News’ Erin Hudson. The used-car seller won a second chance by eliminating $1.2 billion of debt, but it still faces fundamental headwinds. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie also asks...

China’s local governments are struggling to repay trillions of dollars in infrastructure debt, just as more property developers tip into distress, according to Bloomberg News’ Wei Zhou. A Chinese municipal default would send shock waves through global markets, but Beijing is at pains to avoid the moral hazard of a bailout. In this episode of the Credit Edge Podcast, Bloomberg News senior editor Ja...

Signs of life in collateralized loan obligations signal credit market healing, according to Bloomberg News’ Lisa Lee. But it’s too early to predict broad and sustained recovery as interest rate and macroeconomic risks abound. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie also asks Bloomberg Intelligence analyst Stephane Kovatchev about growing stress on the...

Bonds backed by car loans are headed for their first loss since the 1990s as Americans fall behind on payments and dealerships collapse, says Bloomberg News’ Carmen Arroyo. Consumers are burning through pandemic-era savings and hitting a wall with interest costs soaring. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie also asks Bloomberg Intelligence analyst...

Canadian pensions are piling into private debt, lured by fatter returns than in corporate bonds, says Bloomberg News’ Paula Sambo. But smaller funds are struggling to raise cash for the strategy as public markets get cheaper, and there may be more private credit distress to come. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie also asks Bloomberg Intelligence...

Troubled companies are selling assets to relieve pressure from rising rates, slumping earnings and a looming maturity wall, says Irene Garcia Perez, who covers distressed debt for Bloomberg News. But potential buyers are offering less than sellers hoped and some corporations are offloading trophy holdings to generate cash. In this episode of the Credit Edge Podcast, Bloomberg News senior editor Ja...

Office landlords are falling behind on debt payments at the fastest rate in five years as tenants flee, says Scott Carpenter, who covers structured finance for Bloomberg News. Working from home slashed demand for office space, just as surging interest rates boost costs, spelling trouble for lenders. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie also examine...

More companies are going bust not long after securing cash that was supposed to save them, highlighting growing stress as rates rise and the economy slows, says Amelia Pollard, who covers distressed debt for Bloomberg News. More of these so-called liability management deals are expected to fail, making bankruptcies messier and more complex. In this episode of the Credit Edge Podcast, Bloomberg New...

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 se...

Private credit is having a coming-of-age moment, luring investors with double-digit returns and jumbo-sized deals, according to Silas Brown, who covers private credit for Bloomberg News. The $1.5 trillion market isn’t without risk, as borrowers grapple with surging costs and slowing earnings, while investors face liquidity and transparency challenges. In this episode of the Credit Edge Podcast, Bl...

 Companies are going bankrupt at the fastest pace since 2009 and there’s no end in sight as rates rise and the economy sputters, according to Jeremy Hill, who covers distressed debt for Bloomberg News. Lenders are no longer providing fresh liquidity to zombie firms across sectors -- from retail to commercial real estate -- leaving them to perish. In this episode of the Credit Edge Podcast, Bloombe...

Investors in troubled company debt are excited about the opportunities in banks, retail and health care as rates grind higher and the economy sputters, with one fund making $30 million on a single distressed debt trade. Consumers have been resilient but cracks are spreading, while a shift to electric vehicles adds stress in autos, according to Erin Hudson, who covers distressed debt for Bloomberg...

Credit markets are cracking up as liquidity evaporates, according to Jill Shah, who covers leveraged finance for Bloomberg News in New York. Small businesses are struggling to borrow, distressed debt has surged, defaults are ticking up, banks have tightened lending standards and bankruptcies are on the rise, particularly in construction and retail. In this episode of the Credit Edge Podcast, Bloom...

Distressed companies are moving assets out of lenders’ reach to raise new funds and buy time as higher interest rates and a slower economy bite. These controversial debt moves — known as drop-downs — are fueling a rash of creditor lawsuits, according to Reshmi Basu, who covers distressed debt for Bloomberg News. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie...

The restructuring of China Evergrande’s massive debt pile has been one of the riskiest bets in all of distressed investing. Redwood and Saba are among funds that recently endorsed a plan hammered out by the property-development giant and global creditors, according to Rachel Butt, a reporter at Bloomberg News in New York. In this episode of the Credit Edge Podcast, Bloomberg News senior editor Jam...

The takeover by creditors of German retailer Takko Fashion, with a solid operating performance, highlights the rising risk for junk-rated issuers facing a mountain of debt coming due. Some will require drastic solutions as funding costs jump and the economy slows, according to Giulia Morpurgo, a reporter at Bloomberg News in London. In this episode of the Credit Edge Podcast, Bloomberg News senior...

Wall Street banks lost billions of dollars on leveraged buyout financing that they committed to before rates surged. A junk debt market reopening allows them to sell some of that down, but there are lingering concerns about the ability of very risky companies to access funds, according to Paula Seligson, a reporter at Bloomberg News in New York. In this episode of the Credit Edge Podcast, Bloomber...

The banking crisis has made it harder and more expensive to borrow, tipping some of the riskiest companies into distress. In this episode of the Credit Edge Podcast, Eliza Ronalds-Hannon, who covers credit markets for Bloomberg News in Atlanta, looks at the biggest losers and winners — including Saba Capital Management’s Boaz Weinstein. Bloomberg News senior editor James Crombie also asks Bloomber...

The takeover of Credit Suisse by UBS included pulling the pin on $17 billion of risky CoCo bonds, also known as Additional Tier 1s (AT1s), and sending shockwaves through global debt markets. In this episode of the Credit Edge Podcast, Tasos Vossos, who covers credit markets for Bloomberg News in London, weighs the impact of the Swiss bank’s demise and the collapse of its AT1s. And Bloomberg News s...

Credit Suisse debt plunged into distress after the collapse of SVB Financial Group, spreading fear through the global banking sector. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie asks Bloomberg Intelligence credit analysts Arnold Kakuda and Jeroen Julius whether this is a Lehman Brothers moment for financial institutions. Bloomberg News reporter Amelia Pol...

Adani has solved some liquidity problems but it’s not out of the woods. The crisis-ridden Indian conglomerate still needs to regain the trust of investors and has long-term issues with transparency. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie is joined by Divya Patil, who covers credit markets from Mumbai, and Bloomberg Intelligence analyst Cecilia Chan,...