The Credit Edge by Bloomberg Intelligence

Hedge Fund Andromeda Warns of ‘Titanic’ Debt Disaster as Yields Soar

High global government yields are a growing threat to corporate debt markets, according to London-based hedge fund Andromeda Capital Management. “You either have to let l

Columbia Threadneedle Scans AI Debt Rush for Alpha Opportunity

Columbia Threadneedle is looking to outperform by buying into the flood of debt from companies building artificial intelligence infrastructure. “It’s really the best plac

‘Things Are Going to Get Crazier’: AI Debt Deluge Recalls 2007 Risks

Massive borrowing by artificial intelligence companies — some of it to fund their own customers — risks inflating a technology-sector bubble, according to Seaport Researc

BMO Slashes Junk Debt Holdings as Geopolitical, Economic Risks Spread

BMO Asset Management, which oversees almost C$300 billion ($218 billion), has cut its junk-bond holdings and moved into safer parts of credit as geopolitical and macroeco

LBO Debt Coming Due Is Next Big Test for Credit Markets, Says ICG

Companies need to move fast to refinance leveraged-buyout debt coming due over the next few years, according to ICG. “Folks should start getting ahead of it because the t

Investors Keeping Score on 'Bad PIK', Benefit Street Partners' Kumar Says

Investors are increasingly wary of lenders who dish out so-called bad PIK, or payment-in-kind interest, to help struggling portfolio companies avoid default, according to

Wellington Passes on Data Center Debt, Questioning Long-Term Value

Data-center debt returns are falling, risk is rising and there’s uncertainty over what the properties may be worth in the long run, Wellington Management says. “We think

Bull Run in Loans Slams CLO Equity Buyers, Says Eagle Point’s Majewski

Collateralized loan obligations face a second straight year of equity losses, according to Eagle Point Credit Management, a major buyer. “Where we stand right now, it’s c

Sona’s CEO Sees ‘Exciting’ Growth in Asset-Based Finance, SRTs

Sona Asset Management is looking to expand its business in asset-based finance and significant risk transfers as public and private debt markets converge. “The thing that

SpaceX Bondholders Face Huge Key Person Risk on Their Elon Musk Trip

SpaceX bondholders are bolstered by a fat equity cushion, high-grade ratings and a relatively small amount of debt outstanding — but they depend on founder Elon Musk, acc

Europe's Largest Asset Manager Warns of AI Debt Deluge Crowding Out

Further acceleration in AI debt issuance has the potential to steer demand away from government bonds, according to Amundi, Europe’s largest asset manager. “At some point

Real Estate Is Next Bet for Debt Investors Avoiding Private Credit

Private credit disarray spells opportunity for housing giant Pretium, which targets high returns by lending to US homebuilders. “Our private credit looks a little bit dif

Oaktree Says Boring is Beautiful In Dicey Private Credit Market

Private lenders are going back to basics as debt trouble spreads, market participants tell Bloomberg News’ James Crombie in this special episode of the Credit Edge podcas

Goldman Sachs Sees ‘Uncomfortable Tension’ in Credit Markets

Robust demand from pensions and insurance companies will support corporate debt through macroeconomic headwinds and record supply, according to Goldman Sachs. “Spreads ar

Veteran ABS Investor Sees ‘Max Uncertainty With Max Complacency’

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 uncert

Principal Sees High-Grade Downgrade Risk as Issuance Ramps Up

Blue-chip companies, including hyperscalers, may be jeopardizing their credit ratings by piling on debt, according to Principal Asset Management. “We have seen some downg

Private Credit Has a Weak Underwriting Discipline Problem

Loose underwriting standards are increasingly troubling for private credit market participants, according to Bloomberg Intelligence. “This concern has been growing for a

JPMorgan Is Wary of Another Big Leap in AI-Related Spending

JPMorgan Asset Management sees value in the debt of companies building out AI, but it’s keeping a close eye on how much more they plan to spend next year. “If we’re seein

HarbourVest Expects Private Credit Secondaries Volume to Double

Secondary trading of private credit is on track to more than double last year’s record volume, according to HarbourVest Partners. “Through the first quarter we’re run-rat

Citi Warns of Private Debt Risk as ‘Tourists’ Are Forced to Sell

Rookie private lenders that have to sell in a downturn are a potential threat to credit markets, according to Citi. “If the cycle turns and these tourists, rather than wo