FICC Focus

“The pace and trajectory of private-market growth has simply outpaced the growth of bank balance sheets,” says Dadong Yan, head of Barings Portfolio Finance, explaining the success of the asset class and the opportunities that lie ahead. In this episode of Credit Crunch, Yan joins Bloomberg Intelligence’s Noel Hebert to discuss the evolution of portfolio finance from a bank-dominated lending business to an institutional investment opportunity, and how institutional capital helps to fill the financing gap created in private markets. The two talk about the importance of disciplined underwriting, diversification and structural protections, while Yan argues that controlling lender positions, proprietary data and rigorous risk management — not simply yield — will determine long-term success in the asset class.

The Credit Crunch podcast is part of BI’s FICC Focus series.

Cooling inflation and a softer labor market are giving the Federal Reserve more room to remain patient, even as investors debate whether Kevin Warsh’s Fed could still deliver another rate increase. Chris Hodge, chief economist at Natixis, joins Bloomberg Intelligence interest rate strategists Ira Jersey and Will Hoffman to discuss this and more on this Macro Matters edition of the FICC Focus podcast. Hodge explains why recent CPI and PPI data reinforce his view that disinflation remains intact, with tariff effects largely having passed through, housing pressures moderating and wage growth consistent with inflation moving closer to the Fed’s target. The group discusses why Natixis expects the Fed to remain on an extended hold, how recent weakness in the labor market could increase policymakers’ tolerance for above-target inflation and what changes may emerge from Warsh’s reviews of the central bank’s inflation framework and data. They also examine the housing outlook, the approaching midterm elections and why divided government may constrain major fiscal legislation without materially changing the longer-term US deficit trajectory.

The Macro Matters podcast is part of BI’s FICC Focus series.

Rates and the new Fed are at the forefront of market headlines amid wide government bond yields. In this episode of the Credit Crunch podcast, host Mahesh Bhimalingam, Bloomberg Intelligence’s global head of credit strategy, discusses how credit remains a safe haven in every crisis with Mohammed Kazmi, senior portfolio manager at Union Bancaire Privée. They dig deep into the new Fed policy, its operational changes and Fedspeak, and the impact on the yield curve and credit. They also discuss the impact of nominal growth on credit quality and defaults, why credit has been a safe haven and why that is unlikely to change in the near future.

The Credit Crunch podcast is part of BI’s FICC Focus series.

South Korea has become a real-world case study in how market concentration, investor enthusiasm and leveraged ETFs can amplify volatility. In this episode, Bloomberg Intelligence’s Tanvir Sandhu, Rena Kwok and Shirley Wong examine how leveraged products can create powerful feedback loops when positioning starts to outweigh fundamentals. They unpack the mechanics of ETF rebalancing, the role of AI and semiconductor enthusiasm in Korea’s recent market swings and the implications for brokerages, fixed-income investors and broader investment themes across Asia.

“We’ve gotten a little addicted post-2008 to the Fed guiding us,” says Michael Goosay, CIO and global head of fixed income for Principal Asset Management. “I’ve been doing this a very long time to remember when... we kind of had to guess at what the Fed did.” In this episode of the Credit Crunch podcast, Goosay joins Bloomberg Intelligence’s Noel Hebert to talk about the potential implication of a less-transparent Federal Reserve, while hitting on other key areas including investment grade and high yield credit, AI-driven corporate issuance, interest rates and global capital flows. The two also discuss portfolio construction and how, despite macro uncertainty having increased, corporate fundamentals remain resilient, and how the current backdrop favors active management. Emerging markets, securitized credit and municipals are discussed in brief, as is the current relative value landscape.

The Credit Crunch podcast is part of BI’s FICC Focus series.