US Jobless Claims Tick Up To 215K, AI Tech Debt Binge | Real Yield 5/29/2026
Speakers
Natalie Trevithick
— Head of Investment Grade Corporates, Payden & Rygel
James Crumbley
— Private Credit Reporter/Analyst (implied role based on context)
Summary
The video covers mixed US economic data, rising inflation concerns, and the AI-driven debt binge. Guests discuss Fed policy, oil prices, and the outlook for credit markets. A key view is that investment grade credit spreads could tighten further given strong demand and fundamentals.
- US jobless claims ticked up to 215k, with mixed economic data.
- Inflation remains a key concern, with core services inflation accelerating.
- AI infrastructure spending drives massive debt financing, including a $36B deal for Anthropic.
- Software loans are under stress due to AI disruption, posing risks to CLOs and BDCs.
- Investment grade credit spreads are tight but could tighten further to 60s, according to Payden & Rygel.
- Oil prices fall amid hopes of a US-Iran ceasefire deal.
- Fed is expected to stay on pause, with markets pricing in potential hikes.
- Florida governor proposes eliminating property taxes on primary homes.
Trade Ideas
IG credit spreads can tighten to 60s.
Natalie Trevithick believes investment grade corporate bond spreads could tighten further, potentially falling into the 60s basis points range, a level not seen since the mid-1990s. She cites strong technical demand from investors seeking yield above 5%, robust corporate earnings that make bonds resilient even on equity disappointments, and the massive demand for IG supply from hyperscalers like Amazon which saw $127 billion of demand for a $37 billion deal.
Up Next
This Bloomberg Markets video, published May 29, 2026, features Natalie Trevithick discussing LQD. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: Natalie Trevithick · Tickers: LQD