Private credit’s growing ‘IOU’ habit
FT News Briefing
Forhecz Topher
4.4 • 1.3K Ratings
🗓️ 16 October 2024
⏱️ 12 minutes
🧾️ Download transcript
Summary
Shares in ASML led a tech rout on Nasdaq on Tuesday after the chipmaker warned of a slower recovery in the semiconductor market, and Goldman Sachs’ quarterly profits jumped 45 per cent to $3bn, boosted by its equity trading business. Asian battery makers are racing to develop new generations of superfast charging for electric vehicles, and a growing list of cash-strapped companies are deferring loan repayments to private credit funds.
Mentioned in this podcast:
ASML shares drop sharply after warning on semiconductor recovery
Corporate debts mount as credit funds let borrowers defer payments
Battery makers aim to ease EV anxieties with 5-minute charge
Goldman Sachs profits jump 45% to $3bn after trading boost
Citigroup and BofA join other big US banks in beating gloomy forecasts
The FT News Briefing is produced by Niamh Rowe, Fiona Symon, Sonja Hutson, Kasia Broussalian and Marc Filippino. Additional help from Breen Turner, Sam Giovinco, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Our engineer is Joseph Salcedo. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.
Read a transcript of this episode on FT.com
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Transcript
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| 0:00.0 | The UK's energy partner. |
| 0:06.0 | Learn more at equinore. |
| 0:10.0 | At Aquinore. |
| 0:11.0 | The UK. |
| 0:12.0 | Good morning from the Financial Times. Today is Wednesday, October 16th, and this is your |
| 0:18.6 | F.T. News briefing. Europe's largest chipmaker says sales aren't looking too good. |
| 0:25.0 | And over in private credit, funds are letting borrowers kick the can down the road. |
| 0:31.0 | Plus, companies are racing to build electric vehicle batteries that charge |
| 0:36.2 | super fast. It needs owning an EV to feel a lot like owning a petrol or a diesel car in terms of its convenience. |
| 0:46.0 | I'm Sonia Hudson and here's the news you need to start your day. Dutch Chipmaker ASML gave a pretty gloomy outlook yesterday on demand for |
| 1:06.0 | semiconductors. The company said its orders were only half of what |
| 1:10.7 | investors had expected last quarter and it also cut its outlook for next year. |
| 1:16.0 | Two of the companies its supplies are facing their own issues. |
| 1:20.0 | Intel reported disappointing results in August and Samsung said it was |
| 1:25.3 | falling behind on AI chipmaking. ASML stock plunged more than 16% yesterday. |
| 1:33.7 | And the investor jitters didn't stop there. |
| 1:37.3 | Shares in US chipmakers, |
| 1:39.1 | Invidia, and AMD fell more than 4.5%. |
| 1:45.0 | A growing trend within private credit is starting to make some people on Wall Street sweat. |
| 1:56.1 | Funds are giving borrowers the option to defer the interest payments on their credit. |
| 2:01.0 | These are called payment-in-kind kind loans and they're becoming pretty popular. |
| 2:06.4 | The F.T.'s Amelia Pollard has been looking into the risks of these loans. |
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