Bloomberg Global Credit Forum | Live From New York

Summary

The Bloomberg Global Credit Forum featured panels discussing private credit stress, AI infrastructure financing, credit market opportunities, and macroeconomic risks. Speakers highlighted a looming default cycle driven by LBO-era leverage and a maturity wall, while AI capex is absorbing enormous amounts of debt across markets. Steven Tannibal advocated for midcap oil names and Tenet Healthcare as specific value plays.

• Private credit faces growing redemptions and mark-to-market scrutiny, with dispersion across managers and loans.
• A pipeline of defaults from 2021 LBOs and maturities in 2028-2030 is expected to drive a slow-motion default cycle.
• AI infrastructure investment is projected to reach trillions, financed across IG, HY, loans, and structured credit.
• Hyperscalers (Alphabet, Microsoft, Amazon, Meta) are the dominant credit issuers, with strong balance sheets but supply overhang.
• Cable and software debt are highlighted as stressed sectors with potential for opportunistic distressed investing.
• The panelists view stagflation and energy shocks as the biggest macro risks to credit markets.
• Steven Tannibal sees value in midcap oil names and Tenet Healthcare, expecting higher oil prices and reasonable healthcare valuations.
• The audience poll showed 45% favor AI infrastructure debt as the best way to invest in the AI boom.