Interpreting the results of our second annual Debt Confidence Survey has been challenging given the current turmoil in the global debt markets that emanated from issues in the US sub-prime market. This has resulted in liquidity reducing significantly with far reaching consequences on the sustainability of certain financing structures including SIVs (Structured Investment Vehicles) and liquidity concerns within Global and UK banking.
The timing of the survey, at the end of August, was such that the issues in the US sub-prime sector had been widely publicised but before the subsequent ramifications on market liquidity were felt. In assessing the data we have compared the responses between a number of categories (including banking, private equity, corporates and other sectors) and the views that they expressed last year. It is perhaps unsurprising that the majority view was that the good times have stopped rolling. The surprise is the uniformity of opinion within such a diverse
