Private credit’s rapid growth and lack of transparency are concerns to be monitored as funding costs jump, says Fraser Lundie, head of fixed income at Federated Hermes in London. Steep rises in interest payments for lower-rated companies are “not going to be absorbed cleanly and easily,” he tells Bloomberg News senior reporter Lisa Lee and senior editor James Crombie. “The lack of look through is something that I find it quite difficult to have conviction on,” adds Lundie, referring to private debt. Federated Hermes manages about $715 billion in assets. Also in this episode of Credit Edge, Bloomberg Intelligence analyst Pri de Silva analyzes the additional tier 1 bond market, which is staging a comeback and offering double-digit returns. More issuance from Japanese banks provides opportunities for diversification, he adds. See omnystudio.com/listener for privacy information.