FICC Focus

In this State of Distressed Debt edition, BI distressed credit analyst Philip Brendel and Global Credit Strategy head Noel Hebert discuss why higher rate fears and omicron may not derail the credit rally through 1Q. The two also review Intelsat's confirmation, a recent Hertz legal decision, Nordic Aviation Capital's Chapter 11 filing, and some highs and lows of bankruptcy auction experiences.

In this EM Lens & Look-Through edition, host and BI Chief Emerging Markets Credit Strategist Damian Sassower is joined by Christian Lawrence, Managing Director and Senior Cross-Asset Strategist at Rabobank. Lawrence shares his 2022 outlook for currency and debt valuations across EM. And the two assess the pace of central bank policy tightening on bond yields, credit spreads and local currencies across the globe.

In this Macro Matters edition, host BI Chief U.S. Interest Rate Strategist Ira Jersey is joined by BI Chief US Economist Anna Wong and Interest Rate Associate Rates Strategist Angelo Manolatos. Jersey begins the show discussing the Federal Reserve's December meeting with Wong, with a focus on the press conference. Wong notes her view that the Federal Reserve may hike as early as March, with both she and Jersey agreeing an initial hike by June 2022 is very likely. Jersey notes that faster taper announcement hasn't roiled markets because he believes the January-March 2021 Treasury sell off was a "taperless tantrum." Wong also discusses her risk case scenarios for future Fed action.In the Fun Fed Facts segment, Manolatos discusses the nuances of the Feds continued purchases and the affect on bank reserves and the Fed's reverse repurchase agreement facility. He notes that the RRP facility may fall in the near term as T-bills are issued reducing bank reserves as the Treasury General Account increases. Jersey and Manolatos discuss when, why, and how an early start to Fed balance sheet reduction may occur.

In this Credit Chat edition, Bloomberg News senior editor James Crombie and credit reporter Lisa Lee join Robert Schiffman to share their views on the credit market's biggest risks and rewards heading into 2022 with uncertainty, inflation and spreads increasing.

In this Masters of the Muniverse edition, host BI Senior US Municipal Strategist, Eric Kazatsky is joined by Peter DeGroot, Head of Municipal Bond Research and Strategies from JP Morgan, Vikram Rai, Head of Municipal Strategy at Citi, and Mikhail Foux head of Municipal Strategy and Research at Barclays. All are here to recap 2021 municipal bond successes and look ahead to the new year. 

In this State of Distressed Debt edition, BI distressed credit analyst Philip Brendel and Global Credit Strategy head Noel Hebert share their views on how the omicron variant may impact high yield and distressed. The two also review some memorable 2021 bankruptcy themes (Hertz, Intelsat, Washington Prime Group), and provide thoughts on the direction of distressed credits Revlon and Sinclair subsidiary Diamond Sports Group.

In this Macro Matters edition, host BI Chief U.S. Interest Rate Strategist Ira Jersey is joined by BI Chief European Rate Strategist Huw Worthington and Interest Rate Associate Rates Strategist Angelo Manolatos. Jersey begins the show with his outlook on U.S. rate markets and the Federal Reserve in 2022, and suggests a faster taper at the December Federal Reserve meeting doesn't mean faster or fewer hikes, as the market is pricing. Worthington discusses his view on the European Central Bank and the Bank of England -- including how the BOE might conduct balance sheet reduction via bond sales should the bank hike interest rates to 1%. Manolatos provides his view on the Bank of Canada, which he thinks will be relatively hawkish, and in the Fun Fed Facts segment notes that if the Fed does double the pace of taper it will leave open possibility for interest rate liftoff at the March 2022 meeting.

Alejandro Cuadrado, global head of foreign exchange strategy at Banco Bilbao Vizcaya Argentaria (BBVA), joins Damian Sassower of Bloomberg Intelligence to share his outlook for currency and debt valuations across Latin America. The two discuss the outlook for portfolio flows, potential for future monetary tightening and post-election positioning in Argentina and Chile.

In this Masters of the Muniverse edition, host BI Senior US Municipal Strategist, Eric Kazatsky is joined by Jim Colby, Senior Municipal Strategist of Van Eck, to discuss high yield municipals heading into 2022, and navigating a black swan event for an ETF.

In this Macro Matters edition, host BI Chief U.S. Interest Rate Strategist Ira Jersey is joined by Ian Shepherdson, Chief Economist at Pantheon Macroeconomics, to discuss inflation dynamics and the Federal Reserve's reaction function. Shepherdson doesn't believe the Fed will hike prior to 3Q22, even with the next few months' inflation running very hot. In a second segment, Interest Rate Associate Strategist Angelo Manolatos reviews his views on Canadian interest rates and suggests that the Bank of Canada may hike prior to the Fed, and rates generally should climb in 2022.