The Credit Edge by Bloomberg Intelligence

Bain Sees Big CLO Opportunity; WeightWatchers' Survival

Feb 1, 2024

The podcast discusses the potential in collateralized loan obligations, robust growth in India and Australia, and private credit for buyouts. Analysis of WeightWatchers' struggling bonds and hopes for survival despite challenges in the market.

38:27

Creator website

Episode guests

John Wright

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Quick takeaways

CLOs offer strong investment potential despite increasing default rates, with India and Australia showing growth opportunities.

WeightWatchers is restructuring to focus on healthcare offerings like GLP-1 treatments to survive financial challenges.

Deep dives

Credit Markets Trends and Outlook

Credit markets are tight with high demand, record issuance levels, and debates about future Fed rate cuts. Valuations are viewed as fair with loan market refinancing activities. Default rates are expected to stay in a manageable range.

The Fairness of Loan Valuations

01:20

Introduction

4min

Exploring the Complexities of CLOs and Credit Markets

21min

Opportunities and Challenges in the Global Credit Market

6min

Analysis of Weight Watchers' Business Challenges in Debt Markets

4min

Analysis of Credit Rating and Speculation on Company's Future

2min

Transformation of a Company into a Specialty Pharmacy for Weight Loss Drugs

3min

Collateralized loan obligations are among the best debt investment opportunities for this year, according to John Wright, global head of credit at Bain Capital. Spreads on the structured investment vehicles, which repackage leveraged loans into bonds of varying risk, may tighten further, even as default rates rise, Wright tells Bloomberg News’ Lisa Lee and James Crombie and Bloomberg Intelligence’s Mike Holland in the latest Credit Edge podcast. He also sees robust potential for growth in India and Australia, as well as in private credit, especially for buyouts. Slim recovery rates in the loan market are among the biggest worries. Also in this episode, BI’s Holland analyzes the outlook for WeightWatchers, whose bonds are dropping. The company faces a tough road ahead but there is a path to survival, Holland says.

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