Debt Fears Heighten In US And Europe

[Purveyor]

Source: Financial Times

Fears about corporate and commercial property debt reached new heights in the US and Europe on Friday as investors liquidated holdings in a sign of spreading credit turmoil.

The markets were gripped by worries that economic weakness would affect corporate profits, leveraged buy-outs and commercial property. This represents an escalation of the crisis that began with concerns about US subprime mortgages.

The trading was particularly heavy in leveraged loans – used by private equity firms to finance deals.

Mutual funds that invest in these loans have been hit with redemptions, forcing them to dump some of their holdings.

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Ted Wieseman, an economist at Morgan Stanley, said: “Investor worries about potential further writedowns are shifting in a big way from subprime residential mortgages to commercial real estate lending,”

Read more: http://www.ft.com/cms/s/0/2141fb54-d67a-11dc-b9f4-0000779fd2ac.html

[ConcernedCanuk]

1. "Super power" - "economic weakness" - "concerns about US subprime mortgages"

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makes one ponder . . .

[Double T]

2. ALL M&A deals should be stopped.

Control of EVERYTHING is being put in far too few hands and it will only lead to total disaster.

[ayeshahaqqiqa]

3. Kicking

because this is a very serious problem. How many pension funds are going to be effected by this?

[Xenotime]

4. Pensions? What are those?

America should be ashamed for the disaster it has created.