BNP Paribas’s Meghan Robson anticipates junk-bond companies will show a weakening ability to repay debt and credit spreads will widen as interest rates remain high this year.
“One interesting takeaway from first-quarter earnings for high-yield corporates is that for the first time this cycle, we’ve seen interest expense growing more quickly than ebitda,” the firm’s head of US credit strategy told Bloomberg Television’s The Open on Thursday. “We think that deterioration will start to be more apparent with interest coverage on a downtrend for the rest of the year.”
BNP Paribas Head of US Credit Strategy Meghan Robson says she expects spreads to widen later this year as credit conditions tighten. She speaks on “Bloomberg The Open.”
Source: Bloomberg
So far, corporate-yield spreads, including those for ...
