Rethinking Macro Credit Patterns via BI STRTE: Credit Crunch

Macro credit trends tend to be based on more of a feel than precise numbers. In this latest episode of the Credit Crunch podcast, Mahesh Bhimalingam, Chief European Credit Strategist and Heema Patel, Senior Credit Strategy Associate at Bloomberg Intelligence, delve into proprietary research and data on BI STRTE to make macro credit very precise. Explore their novel spread-prediction model with market and macroeconomic drivers, insights on index metrics -- default rates, rating quality/drift and credit ratios. They also discuss if green bonds are trading at a premium or discount, a methodology contrasting with the conventional greenium calculations.

Lastly, they address the main derivative play in credit, the cash-CDS basis and gain perspective on current market patterns and uncover alpha-generating opportunities.