LatAm Loans

The failure of Lehman Brothers has revealed, in as stark terms as possible, that the foundation of mutual trust and confidence on which the whole banking edifice is built had become deeply rotten in just a few years. On Monday, the natural order was restored, and painful though that might be now, it was a necessary adjustment.

Real money investors are shopping for bargains in the secondary leveraged loan market. That’s not sufficient for prices to recover in the short-term, but it’s a necessary, and welcome, first step on the road.