Leveraged finance mkt 'ripe for a correction', says S&P - report |
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Mon, 30 Jul 2007 07:13
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LONDON (Thomson Financial) - Global banks are well placed to withstand the weakening in credit markets but could face a squeeze on revenues if the situation worsens, according to a report by Standard & Poors.In a report out today, S&P says credit ratings will come under pressure if there is a harder landing in the leveraged finance market, which is 'ripe for a correction', the Financial Times reported.The 'golden age of leveraged finance volumes and returns' is now at an end, it adds.S&P says an upturn in defaults 'cannot be far away'. Banks could if the situation worsens see sizeable losses relative to earnings and capital. They will no longer receive such large underwriting fees from leveraged finance activity, the FT said.tf.TFN-Europe_newsdesk@thomson.comjmsCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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Credit Suisse sees global equity markets correcting in H2; Asia to be hit hard 