|
Post by beachbumbob on Jul 10, 2007 4:57:24 GMT -6
From the Financial Times: Junk-rated loans hit new lows The price of junk-rated loans in the US and European markets has tumbled in the past couple of weeks as investors begin to turn away from the asset class, according to new data from S&P LCD, the market information service. US leveraged loan prices have fallen to their lowest level in more than four years, while in the derivatives markets a sell-off has pushed the prices of both US and European loan risk to less than the face value of the loans themselves. The fall in prices is significant for banks and private equity firms preparing to launch new debt deals after recent buy-outs because it implies a rise in loan yields, which means higher borrowing costs. www.ft.com/cms/s/c86a5ade-2e50-11dc-821c-0000779fd2ac.html
|
|
|
Post by jeffolie on Jul 10, 2007 10:53:21 GMT -6
Once the CDOs start to unwind, then watch the market for these toxic loans collapse.
The bottom is not even in sight for this toxic waste.
|
|