Hybrids have significantly underperformed in 2022 and now trade wider than their high yield brethren, a trend that could extend into 2023. Private credit continues to grow assets and influence, yet spreads trail far behind their similar named “parent” companies. Bloomberg Intelligence’s global analysis also suggests changes in discount rates could be a big benefit for pension liabilities. This month’s podcast highlights the credit implications for BT, Telefonica, Boeing, Blackstone, KKR and other business-development companies.

In this Credit Chat edition, European TMT analyst Aidan Cheslin, US Financials analyst David Havens and US Industrials analyst Matthew Geudtner join Robert Schiffman to discuss declining hybrid valuations, the growth of the private credit industry and the impact of rising rates on pension underfunding.