Long-term debt bets on technology companies that are borrowing heavily for AI may end in tears, according to Newfleet Asset Management. “It’s one of the biggest risks out there,” said Dave Albrycht, the multi-sector fixed income manager’s president and chief investment officer. “There’s no free lunch in the bond market,” he tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Arnold Kakuda in this episode of the Credit Edge podcast. Besides investment-grade companies borrowing to fund equity-like risk, they discuss the risk of Oracle falling to junk, why asset-backed securities are a hedge and how leveraged loans will be worth buying when the Federal Reserve stops cutting rates.

See omnystudio.com/listener for privacy information.

KKR is looking to Europe and Japan for yield as US debt spreads grind tighter. “Investors are very focused on relative value in a market where there’s not a lot,” Tal Reback, global investment strategist for the firm’s credit and markets business, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s David Havens in this episode of the Credit Edge podcast. “In general, investors are much more intrigued about how to diversify geographically,” she adds. They also discuss what KKR thinks could be a $1 trillion European asset-backed debt opportunity, private credit default risk, valuations of direct loans, sector bets and business development companies.

See omnystudio.com/listener for privacy information.

The technology-funding frenzy could become a bust for credit markets if AI falls short of lofty expectations, according to Barclays. “If we get to a point where we see a lot of this issuance coming to the market — and then there’s some changes, where maybe certain things are a little bit less viable or a little bit less attractive — that leads to some downside risks,” Brad Rogoff, the firm’s global head of research, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Mike Campellone in the latest Credit Edge podcast. They also discuss “late-cycle” behavior, private-debt risk, asset-based finance and portfolio trades, as well as Barclays’ 2026 forecasts for credit spreads, defaults and global issuance.

See omnystudio.com/listener for privacy information.