The First Default; How Many More?: Credit Crunch

An episode of the FICC Focus podcast, hosted by Bloomberg Intelligence, titled "The First Default; How Many More?: Credit Crunch" was published on March 7, 2023 and runs 29 minutes.

March 7, 2023 ·29m · FICC Focus

Summary

We have potentially seen the first European high yield index default (bond rated D but not yet out of the index) in nearly two years, while the proportion of stressed and distressed bonds continues to fall given a long rally. Where is the risk in the high yield index and how big a default wave do we see this time? Please join Mahesh Bhimalingam, Chief European Credit Strategist, Bloomberg Intelligence as he discusses the default outlook and trends in a Q&A format with Zachary Swabe, Portfolio Manager for High Yield, UBS Asset Management. We discuss the risk profile of the index by rating and sector, the proportion of CCC and CC-D credits, their evolution and relative valuations, and the impact on supply and returns in detail. We also address the macroeconomic outlook affecting high yield in the near and long term.

Episode Description