Posted on 08/30/2007 9:36:59 AM PDT by Hydroshock
LONDON (CNNMoney.com) -- The credit markets will face a critical test next month as bankers attempt to ramp up issuance of risky debt offerings.
The market for high-yield debt and loans has been locked up this summer as investors have balked at risk. But as droves of Wall Streeters head back to work after Labor Day, they're expected to roll up their sleeves and start to try getting deals done.
"Right now everyone is just waiting. The expectation is for the primary market to open up again post-Labor Day," said Peter Acciavatti, a high-yield strategist at JPMorgan Chase in New York.
How investors respond to these offerings could be an important sign of how much more "unwinding" there is left to go in the credit markets, where investors have been reassessing how much they're being paid for putting their money at risk. It could also set the tone for future buyout deals.
Among the deals being closely watched is the debt offering related to the buyout of First Data (Charts, Fortune 500) by private equity firm Kohlberg Kravis Roberts. An estimated $22 billion needs to be raised for that deal, which is expected to close by the end of September.
(Excerpt) Read more at money.cnn.com ...
These people are praying for a market meltdown.
did you see Freddie Mac’s news? good grief. dust bowl a coming
Riiiight. Did you noticed they still made money? They only down 2.6% on this 'great depression' news.
Freddie is down 4.7%, I was looking at Frannie.
Freddie’s lowest close in a year was $55.70. It’s still $5 over that.
Interesting that Freddie is in discussions with Ofheo about bumping up the $417,000 ceiling limit.
jas3
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