The Credit Edge by Bloomberg Intelligence

The $8 trillion mortgage-bond market plunged to levels rarely seen since the global financial crisis as Treasury yields surged. To analyze why and what’s next, we’re joined by Christopher Maloney, mortgage strategist at BOK Financial Capital Markets, and Bloomberg News reporter Scott Carpenter. Homebuyers face the threat of even larger debt payments, while credit investors may find an opportunity to buy cheap bonds. Also in this episode of the Credit Edge, Bloomberg News senior editor James Crombie asks Bloomberg Intelligence senior credit analyst Arnold Kakuda about the outlook for financial institutions following this year’s banking crisis. Wall Street faces more regulatory pressure just as private lenders get more aggressive, Kakuda says.  Listen to this episode here on the Bloomberg Terminal and on Apple Podcasts and Spotify.See omnystudio.com/listener for privacy information.

China’s property crisis has lurched into a perilous new phase — with significant implications for the world’s second-largest economy, according to Bloomberg News’ Alice Huang. The deepening distress hurts other industries and repels foreign investors, Huang says. In this episode of the Credit Edge, Bloomberg News senior editor James Crombie also asks Bloomberg Intelligence analyst Spencer Cutter about growing risks to energy debt from depressed natural gas prices. Smaller producers are most vulnerable as some see cash flow turn negative, Cutter says.Listen to this episode on Apple Podcasts and Spotify.See omnystudio.com/listener for privacy information.

Leveraged finance has sprung back to life with jumbo buyout deals and dividend loans, according to Bloomberg News’ Claire Ruckin. Credit investors are increasingly hungry for risk and companies are piling on debt amid hopes of a soft landing and lower rates ahead, Ruckin says. In this episode of the Credit Edge, Bloomberg News senior editor James Crombie also asks Bloomberg Intelligence analyst Tolu Alamutu about growing distress in real estate. Trouble has spread through Sweden and other parts of Europe, while also putting pressure on financial institutions, Alamutu says. See omnystudio.com/listener for privacy information.

Companies hitting the bond market at record pace left investors hungry for more, according to Bloomberg News’ Caleb Mutua. The deluge will be short-lived as borrowers retreat, waiting for interest rates to come back down, Mutua says. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie also asks Bloomberg Intelligence analyst Mary Ellen Olson about what’s next for Vedanta Resources Ltd., the junk-rated Indian mining company with a pile of debt coming due. Extending bond maturities would buy the company time to sell assets and generate much-needed cash, Olson says. See omnystudio.com/listener for privacy information.

Hedge funds are jumping into the collateralized loan obligation market in pursuit of fat and steady returns, according to Bloomberg News’ Lisa Lee. CLOs are meanwhile menaced by the lingering threat of recession and higher rates — while increasingly repackaging private debt — Lee says. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie also asks Bloomberg Intelligence analyst Jeroen Julius about the outlook for the AT1 market after the collapse of Credit Suisse. Prices have recovered but for some investors, the market’s just too choppy, Julius says.See omnystudio.com/listener for privacy information.

Banks are readying about $15 billion of leverage buyout debt for sale starting in September, stepping back into M&A after losses piled up on their books last year, Bloomberg News’ Paula Seligson, says. Also on this episode of the Credit Edge podcast, Bloomberg News corporate finance reporter Olivia Raimonde chats with Bloomberg Intelligence analyst Jody Lurie, who covers the leisure sector. Lurie walks us through the cruise-line industry’s recovery from the pandemic.See omnystudio.com/listener for privacy information.

Private companies struggle to repay borrowed funds as interest rates rise; concerns about a debt crisis in China and the potential value of offshore bonds; challenges in measuring market problems and impact on businesses; focus on sectors targeted by private credit funds and debt-for-equity swaps; China's economy facing deceleration, property crisis, struggling exports; role of state-owned banks in preventing private debt defaults in China.

Leveraged loan defaults surpass junk bonds, causing pain for companies with floating-rate debt. Bloomberg Intelligence analyst discusses the debt crisis at troubled Chinese developer Country Garden.

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 about M&A in the consumer sector. Hung walks us through recent credit downgrades in the industry.See omnystudio.com/listener for privacy information.

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 also asks Bloomberg Intelligence analyst Mary Ellen Olson about high-yield opportunities in the Indonesian commodity sector. Olson sees nickel producers benefiting from electric vehicle manufacturing, just as coal companies receive a regulatory boost.See omnystudio.com/listener for privacy information.