Distressed Debt Creditor Insight05 December 2007

The US equity market has long been the tail that wags the lumbering debt market dog. Well, every dog has its day, and judging by responses to Debtwire’s Distressed Debt Creditor Insight study commissioned by Bracewell & Giulliani, the time has finally come for fixed income to set the pace.

Participants in the study clearly anticipate the credit market correction that began in Q3 07 to continue into 2008 as both subprime-related transactions and the glut of LBO loans underperform. That mirrors the resounding consensus of over two-thirds of respondents that US GDP growth will decline over the next year.

More than 90% of those asked expect mortgage default-related fund liquidations to intensify in 2008 and a majority believes the credit correction marks the first stages of a continuing downturn rather than a short-term dip.

Table of Contents

1. Foreword

2. Methodology

3. Survey Findings

4. Case Study

5. Notes

6. Contacts

We hope you find this report useful and we would particularly welcome any feedback or questions you might have.

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