Bain Sees Big CLO Opportunity; WeightWatchers' Survival
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Collateralized loan obligations are among the best debt investment opportunities for this year, according to John Wright, global head of credit at Bain Capital. Spreads on the structured investment vehicles, which repackage leveraged loans into bonds of varying risk, may tighten further, even as default rates rise, Wright tells Bloomberg News’ Lisa Lee and James Crombie and Bloomberg Intelligence’s Mike Holland in the latest Credit Edge podcast. He also sees robust potential for growth in India and Australia, as well as in private credit, especially for buyouts. Slim recovery rates in the loan market are among the biggest worries. Also in this episode, BI’s Holland analyzes the outlook for WeightWatchers, whose bonds are dropping. The company faces a tough road ahead but there is a path to survival, Holland says.  See omnystudio.com/listener for privacy information.
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