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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Dan3 who wrote (84882)	8/12/2007 6:15:56 PM
From: MulhollandDrive	Read Replies (1) \| Respond to of 306849

Hopes that debt markets will reopen for leveraged borrowers after a pleasant summer holiday will be dashed, leaving mergers and buyouts and the stocks which depend upon them very exposed. The riskier parts of the debt markets, especially leveraged loans, have all but shut up shop. Hedge funds generally can't get credit from their bank lenders and structured finance isn't buying either. And it's not just that investors could have a long wait before the debt-powered private equity pipeline starts flowing again, it's also possible that a liquidity crisis prompts defaults and wider economic fallout. i have witnessed this personally...associates who put together commercial RE development packages, with private equity firms that were chomping at the bit a MONTH ago, to suddenly when the time for due diligence elapse is weeks away, oooops! nevah mind! deals gone poof! for no apparent reason i conclude that the money doods are concerned about the value of the underlying asset, those deals i am sure will be revisited, but at what price?