Lender Roundup
The Wall Street Journal has had three excellent articles this week on the new lending environment. The first explains the favored tool of private equity, CLOs , the second details Wall Street's, and in particular Lehman Brothers', descent into the ugly world of subprime lending. Finally, an article in tomorrow's Journal provides insight into the problems borrowers are having in the changing credit market. On the positive side, it looks like the market is rejecting the crap deals being peddled and lending standards are improving. On the negative side, there was a lot of crap sold over the past several years that is being held by mutual funds and other investment managers and how this debt will behave in the future is a huge wild card.