

Insights with Jeremy Burton of PineBridge Investments
Jul 15, 2024
Jeremy Burton, a portfolio manager on the leveraged finance team at PineBridge Investments, shares his expertise on the high-yield and leveraged loan markets. They discuss how the upcoming election may affect new-money issuance and the rise of liability management exercises. Burton also explores the nuances between high-yield bonds and leveraged loans, shedding light on current investor appetites. Additionally, he delves into the impacts of recent bankruptcy cases and the ongoing developments in corporate restructuring.
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Market Drivers
- The upcoming election and potential Fed rate cuts are key factors influencing the leveraged finance market.
- These uncertainties affect M&A activity and new-money issuance.
Election and M&A
- A Trump victory would likely boost M&A activity due to a less aggressive antitrust environment.
- However, the timing of Fed rate cuts is independent of the election and depends on market confidence.
Debt Preferences
- Issuers diversify by using both high-yield bonds and leveraged loans.
- Investor appetite for high-yield bonds has increased with higher yields, while private credit competes with loans.