How to Position for a Long War in Iran

About this episode

The episode discusses the potential impact of a prolonged war in Iran on consumer discretionary companies and the credit market.

Consumer discretionary companies are at risk of downgrades and default if the war in the Middle East drags on, according to Bloomberg Intelligence. “We’ll definitely see a bunch of companies that have been holding on finally shake out,” Jody Lurie, a BI credit analyst focused on leisure, travel and lodging, tells Bloomberg News’ James Crombie in this special episode of the Credit Edge podcast. Car rental firms, theme parks and smaller casinos are exposed as rising gas prices crimp consumer spending. The oil rally is a windfall for energy companies, though gains at larger operators may accrue more to equity investors than bondholders. The debt of smaller independent producers may perform better, says Spencer Cutter, who covers the sector for BI. See omnystudio.com/listener for privacy information.

People in this episode

Host: James Crombie

Guest: Jody Lurie

Topics covered

• Iran conflict
• consumer discretionary
• credit risk
• energy sector
• market impact
• downgrades
• default risk

Keywords

• Iran
• consumer discretionary
• credit risk
• downgrades
• energy companies
• gas prices
• market analysis

Mentioned in this episode

Organizations: Bloomberg Intelligence, Bloomberg News

Places: Middle East, Iran

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