Veteran ABS Investor Sees ‘Max Uncertainty With Max Complacency’
About this episode
Paul Norris discusses the current state of credit markets and the risks associated with bad software loans, drawing parallels to the global financial crisis.
Bad software loans will cause credit-market trouble that recalls aspects of the global financial crisis, according to American Century Investments. “We call it max uncertainty with max complacency,” says Paul Norris, referring to tight credit spreads, in this episode of the Credit Edge podcast. “What’s interesting to me is the subprime crisis was very similar,” Norris, who leads the $330 billion asset manager’s securitized markets team, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Reto Bachmann. They also discuss growing risks to business development companies and collateralized loan obligations, advantages of public over private asset-backed debt and why residential mortgages are a buy. See omnystudio.com/listener for privacy information.
People in this episode
Hosts: James Crombie, Reto Bachmann
Guest: Paul Norris
Topics covered
- credit markets
- ABS investment
- financial crisis
- business development companies
- collateralized loan obligations
- asset-backed debt
- residential mortgages
Keywords
- credit spreads
- subprime crisis
- investment risks
- securitized markets
- asset management
- public debt
- private debt
- mortgages
Mentioned in this episode
Organizations: American Century Investments, Bloomberg News, Bloomberg Intelligence
More episodes of The Credit Edge by Bloomberg Intelligence
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