The Credit Edge by Bloomberg Intelligence

The restructuring of China Evergrande’s massive debt pile has been one of the riskiest bets in all of distressed investing. Redwood and Saba are among funds that recently endorsed a plan hammered out by the property-development giant and global creditors, according to Rachel Butt, a reporter at Bloomberg News in New York. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie also talks to Bloomberg Intelligence analyst Matthew Geudtner about junk borrowers heading for investment grade despite macroeconomic headwinds. Companies in the travel and leisure sector are doing particularly well amid “revenge spending” by US consumers with pent-up demand after years of Covid-19 restrictions. Howmet Aerospace, an aircraft material supplier, is one to watch, Geudtner says. See omnystudio.com/listener for privacy information.

The takeover by creditors of German retailer Takko Fashion, with a solid operating performance, highlights the rising risk for junk-rated issuers facing a mountain of debt coming due. Some will require drastic solutions as funding costs jump and the economy slows, according to Giulia Morpurgo, a reporter at Bloomberg News in London. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie also talks to Hong Kong-based Bloomberg Intelligence analyst Pri de Silva about opportunity in the financial sector following the recent collapse of banks in the US and Europe. Additional Tier 1 securities are poised for a comeback — with imminent issuance in Asia — and they’re too good for investors to miss given relatively high yields, says de Silva.See omnystudio.com/listener for privacy information.

Wall Street banks lost billions of dollars on leveraged buyout financing that they committed to before rates surged. A junk debt market reopening allows them to sell some of that down, but there are lingering concerns about the ability of very risky companies to access funds, according to Paula Seligson, a reporter at Bloomberg News in New York. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie also asks London-based Bloomberg Intelligence analyst Aidan Cheslin about opportunities and risks in the telecom, media and technology sector. Hybrid corporate bonds battered by the banking crisis may now offer value after the companies selling them emerged mostly unscathed.See omnystudio.com/listener for privacy information.

The banking crisis has made it harder and more expensive to borrow, tipping some of the riskiest companies into distress. In this episode of the Credit Edge Podcast, Eliza Ronalds-Hannon, who covers credit markets for Bloomberg News in Atlanta, looks at the biggest losers and winners — including Saba Capital Management’s Boaz Weinstein. Bloomberg News senior editor James Crombie also asks Bloomberg Intelligence analyst Spencer Cutter about opportunities in the energy sector. Oil companies that survived prior crises are in good shape to weather the next storm, offering a safe haven. Cutter also weighs the credit impact of Warren Buffett increasing his stake in Occidental Petroleum, a big part of many debt portfolios.See omnystudio.com/listener for privacy information.

The takeover of Credit Suisse by UBS included pulling the pin on $17 billion of risky CoCo bonds, also known as Additional Tier 1s (AT1s), and sending shockwaves through global debt markets. In this episode of the Credit Edge Podcast, Tasos Vossos, who covers credit markets for Bloomberg News in London, weighs the impact of the Swiss bank’s demise and the collapse of its AT1s. And Bloomberg News senior editor James Crombie asks Bloomberg Intelligence analyst Jody Lurie about funding risks for highly-indebted companies in the cruise, gaming and lodging sectors. As interest rates surge and earnings slump, junk-rated borrowers are exposed, but there are some hotel diamonds in the rough.See omnystudio.com/listener for privacy information.

Credit Suisse debt plunged into distress after the collapse of SVB Financial Group, spreading fear through the global banking sector. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie asks Bloomberg Intelligence credit analysts Arnold Kakuda and Jeroen Julius whether this is a Lehman Brothers moment for financial institutions. Bloomberg News reporter Amelia Pollard also digs into the impact of SVB’s failure.See omnystudio.com/listener for privacy information.

Adani has solved some liquidity problems but it’s not out of the woods. The crisis-ridden Indian conglomerate still needs to regain the trust of investors and has long-term issues with transparency. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie is joined by Divya Patil, who covers credit markets from Mumbai, and Bloomberg Intelligence analyst Cecilia Chan, who takes a look at retailers and casinos to gauge China’s reopening -- a key to the global economic outlook.See omnystudio.com/listener for privacy information.

Evergrande’s struggle to restructure billions of dollars in debt has significant implications for credit markets and the clock is ticking. The embattled Chinese property developer has about $290 billion in liabilities and faces a March 20 court hearing on a winding-up petition. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie is joined by Alice Huang, who covers China’s credit markets for Bloomberg News from Hong Kong, for an in-depth discussion. Meanwhile in India, Bloomberg Intelligence analyst Mary Ellen Olson assesses the risks for Vedanta Resources, which is running into liquidity problems.See omnystudio.com/listener for privacy information.

The largest buyout financing ever arranged by private credit firms may be in the works -- Apollo Global Management and HPS Investment Partners are among lenders that have offered to help provide a record $5.5 billion loan supporting the buyout of health-care technology company Cotiviti. In this episode of the Credit Edge Podcast, Bloomberg News reporter Jill Shah is joined by private credit reporter David Brooke to talk about the $1.4 trillion private credit market and the increasing role in M&A financing. Bloomberg Intelligence’s Stephen Flynn also provides an update on some of the names in the telecommunications and media sector, including the pending merger of Rogers Communications and Shaw Communications, the deteriorating outlook for Lumen Technologies and potential catalysts for Disney’s credit profile.See omnystudio.com/listener for privacy information.

The rally across risk assets was perhaps felt the most in a corner of the structured credit market, agency backed mortgages. In this episode, Bloomberg News reporter Carmen Arroyo looks at why the bonds had the best start of the year ever, while Mike Holland of Bloomberg Intelligence digs deeper into the healthcare sector.See omnystudio.com/listener for privacy information.