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Survey Predicts Credit Tightening and Market Decline Will Continue into 2008

December 5, 2007

NEW YORK--(December 5, 2007)--The Distressed Debt Creditor Insight survey predicts that the current market "correction" will lead to a longer-term market decline. More than 85 percent two-thirds believe that US GDP growth will slow next year. More than 90 percent surveyed expect mortgage default-related fund liquidations to intensify, and many participants make it clear that the CLO market is withering on the vine.

"The participants in this survey are industry leaders focused on a broad range of leveraged finance, high yield and distressed debt situations," said Matt Wirz, the Editor-in-Chief of Debtwire. "It is clear that the industry believes that the current market 'correction' is fast turning into a longer-term negative trend."

"One investor's leveraged finance problem is another investor's leveraged finance opportunity," said Evan Flaschen, Chair of the Financial Restructuring Group of law firm Bracewell & Giuliani LLP, adding that "The Survey respondents are in the markets every day evaluating today's finance and investment opportunities and analyzing the potential distressed debt opportunities of tomorrow. For them, the over-leveraged, wildly optimistic financings of the mid-2000s are turning into a 2008 bull market for distressed debt investing opportunities."

Download: Distressed Debt Creditor Insight Survey