2008 -- A New Year and a New Market, Predicts Debtwire and Bracewell & Giuliani LLP Survey
December 5, 2007
According to the collective opinion of major hedge funds, institutional investors, Wall Street proprietary and trading desks and large commercial lenders, the over-leveraged and irrationally exuberant financings in recent years will create robust opportunities for distressed investors in 2008. This consensus was revealed by a recent survey of a broad segment of the investment community conducted by Debtwire and Bracewell & Giuliani LLP. For a copy of the survey, click here.
Investors firmly believe that the subprime mortgage crisis fallout will continue to escalate in 2008 through sustained tightening of credit markets and increased failures of SIVs heavily invested in these subprime securities. So it appears that, while the party fueled by the recent bull market's unprecedented liquidity has come to an end, another party has only just begun. Substantial market volatility, litigation, distressed financings/refinancings and restructuring opportunities will mean that the New Year will also have a New Market. In addition, we are now seeing government subpoenas, investigations and Congressional proclamations regarding the subprime situation. Welcome to 2008!
For general inquiries regarding the survey, please contact Evan Flaschen.
For inquiries regarding the latest round of government subpoenas and investigations, please contact Marc Mukasey.