The credit market contagion that led to record losses at some of the world's largest financial institutions may be far from over, according to hedge fund managers gathered in Monaco this week.
More than 80 percent of the fund managers, investors and hedge fund service providers at the event said they expect the credit crisis will continue, a survey found. Almost a quarter said they expect the situation ``will deteriorate significantly.''--------Worst Since Depression!!!!!!
``It's all bad news on the horizon,'' said Maria Boyazny, "This correction is going to be a long one. It's a recipe for disaster for credit markets.''
Edward Altman, a professor at New York University's Stern School of Business who has tracked defaulted debt for nearly 40 years, said an impending wave of defaults could be the worst on record in the U.S., at 16 percent of corporate debt.
``It may be the worst recession since the Great Depression, that's not impossible,'' said Altman, who estimates default rates on U.S. corporate debt have tripled so far this year from record lows last year. ``There's a lot of negatives out there.''
``This is a major, major event, it's going to take a while to resolve itself,'' said Holmes, who reckons the U.S. slipped into recession in December. ``In the last recession the banking industry was healthy, this time it's very, very sick.''
``There's a Chinese proverb, where there's disaster there's an opportunity,'' said Boyazny of Siguler Guff.
Matjem: So friends......"There will always be the first time"....Aku bet ramai antara kengkawan kita yg keje bank.......be prepared.
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