Episode 32: Hunting Zombie Companies; the Next Sub-Prime Crisis in High-Yield Debt; the Outlook for Interest Rates; and the Aussie Housing Crash Accelerates
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Welcome to the Complexity Premia podcast from Coolabah Capital, which is hosted by Christopher Joye, CIO and portfolio manager at Coolabah Capital. The Complexity Premia podcast strives to deconstruct modern investment problems for wholesale (not retail) participants in capital markets. You can listen on your favourite podcast app, or you can find it on Spotify, Podbean or Apple Podcasts.
In this punchy episode of the Complexity Premia podcast, we discuss a range of important developments, including:
- How according to Coolabah’s new analysis, hordes of ‘zombie’ companies in Australia and the US are going to die as economies are purged of their weakest enterprises
- Why this is related to the explosion in private credit funds and high yield bond issuance, which have provided finance to companies that cannot typically get loans from more conservative and highly regulated banks (think of this as a new sub-prime crisis)
- The outlook for interest rates and the various dilemmas confronting the RBA, including an independent review of its role in the policymaking firmament
- And how the great Aussie housing crash has continued to accelerate in line with Coolabah’s contrarian forecasts
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