About this episode

The episode discusses the risks of credit rating downgrades for blue-chip companies due to increased debt issuance, along with insights on market behavior and investment trends.

Blue-chip companies, including hyperscalers, may be jeopardizing their credit ratings by piling on debt, according to Principal Asset Management. “We have seen some downgrades, and I would expect that that would continue as borrowing ramps up,” Mike Goosay, the $600 billion manager’s global head of fixed income, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Julie Hung on the latest Credit Edge podcast. “I don’t think that’ll have a behavioral effect on the way that investors look at the market, nor does it — to date, anyway — change the borrowing costs of those corporates,” he adds. They also discuss the artificial-intelligence funding frenzy, why junk bonds are attractive despite macroeconomic risks and how global government-bond volatility affects demand for credit. See omnystudio.com/listener for privacy information.

People in this episode

Hosts: James Crombie, Julie Hung

Guest: Mike Goosay

Topics covered

• credit ratings
• debt issuance
• artificial intelligence
• junk bonds
• government bonds
• market behavior

Keywords

• credit ratings
• debt
• high-grade downgrade
• artificial intelligence
• junk bonds
• borrowing costs
• market volatility

Mentioned in this episode

Organizations: Principal Asset Management, Bloomberg News, Bloomberg Intelligence

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