17
Outlook
for credit crunch (cont’d)
–Efforts
to inject liquidity into market and lower interest rates will begin to
take hold
•With
tighter credit standards and improving liquidity, banks will be
able to attract more funds, allowing them to increase
lending
•As
investors reach consensus on fair values, credit spreads will
realign
•Deals
hung up in pipeline will get priced and current backlog will be
cleared