Aegon’s Junk Debt Chief Braces for Credit Pain as Cracks Spread

More highly-indebted companies will tip into distress as the US economy slows and earnings suffer, according to Aegon Asset Management.

“I am bracing for a little more trouble ahead,” Jim Schaeffer, the $380 billion manager’s global head of leveraged finance, said on the latest Bloomberg Intelligence Credit Edge podcast. “We’re starting to see more and more companies just hitting a wall.”

Aegon’s Jim Schaeffer speaks on the Credit Edge podcast.

Schaeffer is focused on third quarter US earnings, which will kick off next week when the biggest banks report. He’s watching for signs of deterioration in revenue or guidance, as well as how companies ...