Credit Crisis Will Weigh on Markets for a Decade, JPMorgan Says |
| Bloomberg - Apr 16, 2008 |
The global credit crisis that toppled Bear Stearns Cos. and led to $245 billion in asset writedowns and losses at the world's banks will likely affect markets for the next decade, JPMorgan Chase & Co. analysts said.
Banks will probably have to retain more loans on their balance sheets, asset-backed securities that rely on high leverage and are funded with short-dated debt will disappear and hedge funds are likely to consolidate, analysts Jan Loeys and Margaret Cannella wrote in a report today.
``Banks will become bigger, safer and somewhat less profitable,'' they wrote. ``Securitization will return as its economics are intact, but will be smaller and funded differently. Hedge funds will become larger.''
Read Full Article from Bloomberg
- Posted: 2008-04-16 08:48:41
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