...The second half of 2008 was marked by a string of extraordinary events. The financial crisis reached new depths, culminating in the collapse of Lehman Brothers Holdings Corp. and the introduction of an unparalleled series of government programs intended to revive frozen credit markets. As evidence mounted of the negative effects of the financial crisis on global economic growth, equity markets worldwide began to see huge declines in value. The impact of these events on investor confidence, and on expectations for the credit markets going forward, is abundantly clear in the most recent Fitch Ratings/Fixed Income Forum Survey of Senior U.S. Fixed Income Investors. Most respondents to the recent survey, conducted in January, now believe that either a deep or very deep recession will grip the U.S., Europe and emerging markets over the coming year, and roughly 50% believe that the economic downturn will last one to two years across all regions. In addition, expectations for stability in the...
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