Banks are readying about $15 billion of leverage buyout debt for sale starting in September, stepping back into M&A after losses piled up on their books last year, Bloomberg News’ Paula Seligson, says. Also on this episode of the Credit Edge podcast, Bloomberg News corporate finance reporter Olivia Raimonde chats with Bloomberg Intelligence analyst Jody Lurie, who covers the leisure sector. Lurie walks us through the cruise-line industry’s recovery from the pandemic.

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Companies that borrowed from private markets are struggling to pay as interest rates surge, according to Bloomberg News’ Kat Hidalgo. There’s more distress to come amid record levels of fundraising and ever-increasing deal sizes, Hidalgo says. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie also asks Bloomberg Intelligence analyst Andrew Chan about the brewing debt crisis in China. Offshore bonds from local government financing vehicles may provide relative value with yields above 15% — assuming they can avoid default, Chan says.

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Companies with floating-rate debt are feeling the pain of higher interest costs as leveraged loan defaults outpace that of junk bonds, Bloomberg News’ Jill Shah, says. The one-year default rate for US loan borrowers has soared to 4%, an analysis by Morgan Stanley shows. Also on this episode of the Credit Edge podcast, Bloomberg News corporate finance reporter Olivia Raimonde chats with Bloomberg Intelligence analyst Daniel Fan who covers China properties. He walks us through the debt crisis unfolding at distressed Chinese developer Country Garden.

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Yellow — the bankrupt trucking firm — is deciding between competing financing packages from lenders including Apollo, Bloomberg News’ Amelia Pollard says. The company owes the US government more than $700 million from a pandemic-era loan. Also on this episode of the Credit Edge podcast, Bloomberg News corporate finance reporter Olivia Raimonde chats with Bloomberg Intelligence analyst Julie Hung about M&A in the consumer sector. Hung walks us through recent credit downgrades in the industry.

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Leveraged loans are enjoying a euphoric risk-on period of excess demand for limited supply, according to Bloomberg News’ Jeannine Amodeo. Banks offloading hung buyout debt at a steep discount could send prices back down but there are reasons to be bullish on the market for the rest of this year, Amodeo says. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie also asks Bloomberg Intelligence analyst Mary Ellen Olson about high-yield opportunities in the Indonesian commodity sector. Olson sees nickel producers benefiting from electric vehicle manufacturing, just as coal companies receive a regulatory boost.

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Carvana is a rare case of lenders working together to agree restructuring terms and could be a blueprint for other distressed debt situations, according to Bloomberg News’ Erin Hudson. The used-car seller won a second chance by eliminating $1.2 billion of debt, but it still faces fundamental headwinds. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie also asks Bloomberg Intelligence analyst Aidan Cheslin about the risks to Telecom Italia’s bonds as the company sells assets to reduce leverage. Cheslin also looks at the potential for Spanish tower operator Cellnex to become a rising star.

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China’s local governments are struggling to repay trillions of dollars in infrastructure debt, just as more property developers tip into distress, according to Bloomberg News’ Wei Zhou. A Chinese municipal default would send shock waves through global markets, but Beijing is at pains to avoid the moral hazard of a bailout. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie also asks Bloomberg Intelligence analyst Himanshu Bakshi about the risk to Canadian banks of a spike in mortgage defaults. The main financial institutions can withstand significant real estate stress, though their bonds may come under pressure.

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Signs of life in collateralized loan obligations signal credit market healing, according to Bloomberg News’ Lisa Lee. But it’s too early to predict broad and sustained recovery as interest rate and macroeconomic risks abound. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie also asks Bloomberg Intelligence analyst Stephane Kovatchev about growing stress on the container shipping sector as demand crumbles. Smaller companies are most threatened by a steep drop in freight rates after a Covid-19-era windfall.

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Bonds backed by car loans are headed for their first loss since the 1990s as Americans fall behind on payments and dealerships collapse, says Bloomberg News’ Carmen Arroyo. Consumers are burning through pandemic-era savings and hitting a wall with interest costs soaring. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie also asks Bloomberg Intelligence analyst Paul Vickars about distress at Thames Water, the UK’s biggest water provider. Other companies in the sector are also running into trouble as inflation keeps rising, says Vickars.

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Canadian pensions are piling into private debt, lured by fatter returns than in corporate bonds, says Bloomberg News’ Paula Sambo. But smaller funds are struggling to raise cash for the strategy as public markets get cheaper, and there may be more private credit distress to come. In this episode of the Credit Edge Podcast, Bloomberg News senior editor James Crombie also asks Bloomberg Intelligence analyst Stephen Flynn about the telecoms and media outlook. The debt of Paramount Global trades at much wider spreads than peers, but may be due for a correction tighter.

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