Octus Radio 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.
AI Snips
Chapters
Transcript
Episode notes
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.