In 2008, the loan market, just like many other capital markets, searched in vain for a bottom. A crisis that reared its head first in the middle of 2007 finally led to the near disintegration of the entire financial system during the second half of 2008. Overall loan issuance during 4Q2008 fell from 3Q2008 numbers by nearly 66% to just over $111 billion. Loan issuance contracted across all segments, but it was leveraged loans where the credit crunch hit hardest. Leveraged loan issuance decreased by 57% in 2008 to $294.45 billion as banks were more focused on repairing their balance sheets and had little appetite for underwriting riskier deals. The year 2008 proved to be a disastrous year for the loan market and the outlook for 2009 is not looking any better. Nearly 80% of respondents to Reuters LPC's Quarterly Survey expect more consolidation in the financial sector.
U.S. Loan Market Review: 2008 ends with lending grinding to a halt Anonymous The Secured Lender; Mar 2009; 65, 2; Docstoc pg. 12 Reproduced with permission of the
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