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Leveraged-buyout loan defaults will skyrocket making global stock markets collapse with thousands of international bankruptcies
Marla Guthrie
Jul. 4, 2008

The global stock markets are poised tom crash in the next two years. Companies bought by private-equity firms worldwide must repay the high-risk, high-yield loans and bonds by 2010. These companies never thought about repaying loans at hyper inflated rates.
Investors are shunning structured debt instruments such as CDOs, the main buyers of leveraged loans, after the credit-market seizure caused by the U.S. subprime mortgage collapse.
These companies will now be forced to spin off their bought assets at a much lower price. But even at lower prices the seller will have real hard time in pooling cash to service their debt.
International loan defaults are already skyrocketing. Bankruptcies of major global companies will initiate a total meltdown of the global stock markets.
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