LFN Poll Archive

Mezzanine financing is experiencing a comeback, and some sources say the asset class is poised to make up a bigger chunk of the capital structure in some LBO deals, even larger ones. Will jumbo mezz financing become a permanent fixture in the market?

Absolutely. We’ll see a lot more of it.	20%
To an extent, but mezz will still remain largely a middle-market asset class.	67%
No dice. Once the markets bounce back, mezzanine financing will once again be pushed out of larger deals.	13%

Treasury Secretary Henry Paulson told Congress last week that financial institutions should be allowed to fail. What do you think the government’s policy should be?

- The larger danger to the economy requires that the government help prevent financial institutions from failing.	0%
- The government should step in, but only in special circumstances to avoid widespread contagion.	33%
- Let them fail. The government should not cover bad bets.	67%

Oil prices have been setting new records. How high will oil prices go before the end of the year?

$150 per barrel	30%
$175 per barrel	20%
$200 per barrel	30%
Prices won’t get much higher	20%

JPMorgan Chase CEO James Dimon said that the credit crisis is "75%-85% done." Is he right?

Yes	36%
No	29%
What is he smoking?	36%

High yield spreads over Treasurys topped 800 bps in March, and they have since dropped to 685 bps (as of April 28). Will we see 600 in May?

Yes	36%
No	64%

Have recent happenings in leveraged finance, such as more high yield bond deals and banks unloading hung debt, boosted your confidence?

Yes	67%
No	33%

When will the primary leveraged finance markets return?

Not until the second half of 2008.	8%
Not until some time in 2009.	58%
After 2009.	8%
Who knows? But we’ll never see 2006 to 2007 volume levels.	25%

The partnership of NBC Universal with The Blackstone Group and Bain Capital is one recent example of private equity firms and corporations joining forces to buyout a target company (in this case The Weather Channel). What do you think of these partnerships?

A match made in heaven. This is the right time for these deals.	63%
A match made in hell. These groups are too incompatible to work well together.	38%
Too rare. We won’t see many more of these deals in the future.	0%

Many people will be returning from their summer vacations after Labor Day, will a vibrant new issuance market return with them?

Yes, the primary markets will be back after Labor Day.	38%
No, the primary market will still be passed out at the beach.	63%

Will Lehman Brothers survive as an independent firm?

Yes, the restructuring along with a cash infusion from a secret admirer will work.	0%
Not really, they will be bought by a large bank, possibly BofA, and integrated into its structure.	60%
Not at all, Lehman will follow Bear Stearns down the tubes.	40%

Should the federal government have stepped in to save Lehman Brothers?

Yes, the federal government needs to play an active role in tough economic times as these.	0%
No, Lehman is not “too big to fail” and it’s about time these investment banks faced the music.	100%

Will you miss the freewheeling days of the independent investment bank?

Yes, investment banks were financially innovative and made a lot of people rich.	0%
Hell yes, investment banks were financially innovative and made me rich.	17%
No, it’s time for less unabashed recklessness and more regulation and fiscal sobriety.	67%
Hell no, I’m saving my pennies for a luxury Manhattan co-op at a steal.	17%

Will the government’s bailout plan alleviate the credit crisis as intended?

Yes, it will help banks breath easier and start lending again.	25%
Somewhat, but it still may get worse before it gets better.	50%
Doesn’t matter. They shouldn’t have done it.	25%

Should the House of Representatives have passed the bailout bill the failed on September 29?

Yes. Congress gave in to knee-jerk populism and short-sighted politics.	67%
No. Congress should take the time to craft a bill that will pass.	33%

Will the Federal Reserve’s commercial paper SIV boost market confidence the way the bailout bill did not?

Yes, this will finally put capital into the market in a very direct way, which will keep the economy moving.	0%
No, because unless credit investors fears are addressed for the long term, no short-term solution will do the trick.	33%
Neither government intervention is a silver bullet, but both will do their part to help us through this.	67%