Credit Crunch: Adams Street’s Diehl on Trends in Private Capital
“I think it’s very difficult to predict a world where you might go back to zero interest rates. And so that all portends that there’s likely to be an uptick in default rates,” says Jeff Diehl, managing partner and head of investments at Adams Street, discussing potential challenges awaiting direct lenders after the strong growth of the asset class. Diehl joins Bloomberg Intelligence’s Noel Hebert on this episode of the Credit Crunch podcast to talk about Adams Street’s approach to private credit managers, a focus on sectors exposed to disruption, how having private equity (PE) and venture capital exposures creates synergies. They also discuss private market secondaries, how hyper-scaling in parts of the direct-lending market may add returns risk and the outlook for PE exit activity.
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State of Distressed: Joele Frank’s Freitag on Distressed Liaisons
“I spend most of my time trying to downplay the stuff that you find fascinating, right?,” Joele Frank Partner Michael Freitag says. “The inter-creditor interaction, the creditor versus sponsor interaction, the creditor versus issuer action. We try to position all of that as this noise, this thing going off to the side, being managed by sophisticated investors and sophisticated advisors.” In this episode of The State of Distressed Debt, Freitag discusses with Bloomberg Intelligence’s Noel Hebert and Phil Brendel how distressed companies’ strategic communications have evolved over the past 30 years. (6:20) Freitag delves into the crafting and sequencing of press releases and 8-Ks as part of a comprehensive restructuring strategy, stressing that accurate, timely communications are critical to combat the growing presence of “dark arts” in social media. The podcast concludes with BI’s Negisa Balluku joining Hebert and Brendel for a roundtable discussion on Spirit Airlines, LifeScan, At Home, Azul, TPI Composites, Claire’s and QVC Group. (1:14:00)
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EM Lens: Risk Appetite Is Improving, Capital Flows to Follow
Foreign demand for emerging-market local debt is improving, as overseas investors pursue yield differentials amid diminishing currency volatility. Bertrand Delgado, head of Latin America strategy at Societe Generale, joins Damian Sassower, Bloomberg Intelligence’s chief emerging market fixed income strategist, to assess macroeconomic conditions across Latin America and the broader EM landscape, with implications for institutional investors across the globe. Delgado and Sassower touch on topics ranging from portfolio flows and foreign direct investment to cross-asset volatility and currency skew.
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Macro Matters: Federated Hermes Gallo on Fixed Income Outlook
“The Federal Reserve was created to have a degree of what I like to call operational independence”, says Federated Hermes Deputy Chief Investment Officer for Fixed Income RJ Gallo on this Macro Matters edition of the FICC Focus podcast series. He joins host and Bloomberg Intelligence Chief Interest Rate Strategist Ira Jersey to discuss future movements of the Treasury yield curve, recent economic data and its quality, and effects of recent government policies such as tariffs and the budget. On monetary policy and the risks to Fed independence, he believes the Fed was created to have a degree of operational independence, but as an organization with board members appointed by political officials, it’s not outside the political sphere.
The Macro Matters podcast is part of BI’s FICC Focus series.
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Credit Crunch: France, Tariffs, Fed, UK: Credit Always Resilient
Credit fared better than rates and equities through multiple crises this year across the globe — France, tariffs, Fed concerns and even the UK worries. In this episode of the Credit Crunch podcast, host Mahesh Bhimalingam, Bloomberg Intelligence’s global head of credit strategy, discusses these crises and the multi-asset outlook with Iain Stealey, international CIO of global fixed income at JPMorgan Asset Management. They cover US, Europe and UK growth, inflation, central bank views and the dollar. The state of credit fundamentals and default expectations for the next year across Europe and the US are examined in detail, highlighting the resilience of credit in outperforming rates and equities.
The Credit Crunch podcast is part of BI’s FICC Focus series.
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