As commercial real estate continues to menace banks and investors, Goldman Sachs Asset Management is leaning into the debt. “What we’ve been able to do is find a lot of opportunities in commercial mortgage-backed securities,” Lindsay Rosner, head of multi-sector investing at the company, told Bloomberg News’ James Crombie and Bloomberg Intelligence credit analyst Jody Lurie in the latest Credit Edge podcast. “It’s a good portion of our portfolio, and we think it generates a decent amount of carry.” In this episode, Rosner and Lurie also debate the outlook for retail and leisure sector companies as lower-income US consumers come under pressure.

See omnystudio.com/listener for privacy information.

Funding companies with unsustainable debt loads has been “the best opportunity in the corporate credit market over the last year or two,” Jimmy Levin, Sculptor Capital Management’s chief investment officer, says in Bloomberg Intelligence’s Credit Edge podcast. Separately, Sculptor expects substantial growth in asset-based finance, where Levin sees double-digit returns, he tells Bloomberg News’ James Crombie and Irene Garcia Perez, and BI credit analyst Stephane Kovatchev. Also in this episode, Levin and Kovatchev discuss the outlook for rates, the resilience of US consumers and positioning in the debt of cyclical industrial companies.

See omnystudio.com/listener for privacy information.

Norinchukin Bank faces significant losses from the sale of US and European sovereign bonds that tumbled as interest rates rose, and other financial institutions may also be exposed. “The bank is still losing more than a billion dollars a quarter,” says Bloomberg Intelligence senior credit analyst Pri de Silva, referring to the Japanese agricultural bank also known as Nochu. “They need to rip that band aid off and address negative carry in the securities portfolio,” de Silva tells Bloomberg News’ James Crombie in the latest Credit Edge podcast. De Silva also weighs the outlook for Asia’s Additional Tier 1 bond market, where risk premia are shrinking as supply evaporates. Also in this episode, Mary Ellen Olson, senior credit analyst at Bloomberg Intelligence, discusses the turnaround at India’s Vedanta, which may tap the US dollar bond market, as well as the impact of China’s economic slowdown on Asian miners.

See omnystudio.com/listener for privacy information.