SOURCE: SourceMedia

October 10, 2007 08:00 ET

Amid Bond Market Volatility, Private Placements Expected to Increase

Annual Investors Survey Points to Uptick in Second Half of 2007 and in 2008

NEW YORK, NY--(Marketwire - October 10, 2007) - The recent turmoil in the credit markets may cause more companies to raise money in the private placement market, while many investors are expecting to increase their allocations to privately placed debt during the remainder of this year, according to Private Placement Letter, a SourceMedia publication covering the privately placed debt market.

The majority of participants in Private Placement Letter's Annual Investors Survey, which was conducted over the past couple months, said they expected to increase their private placement investments during the remainder of 2007. If such an increase occurs, it would represent the first sizable jump in private placement volume since 2004.

"Many in the private placement market believe price weakness and volatility in the public market are going to push more issuers and banks to do deals in the private arena," says Grant Catton, Managing Editor of Private Placement Letter. "The turmoil that started this past summer may have been the catalyst that the private market was looking for."

In addition to questions about future investment plans, the survey also includes several statistics on 2006. The 20 investors who participated in this year's survey invested a total of $45.46 billion in private placements last year, up from $44.32 billion in 2005, while the top investor increased its private investments by 20.4% year over year.

Private Placement Letter's Annual Investors Survey is the most comprehensive buyside survey of its kind. Each year, PPL gathers detailed information on the investment characteristics of the leading private placement investors, and breaks down those numbers according to geography, asset class, asset quality, maturity, source, and year-over-year change. This year, the results incorporate 20 of the leading private placement investors, representing more than $233 billion in assets that are dedicated to private placements.

To purchase the full Annual Investors Survey, including more than 50 comparison charts of the 20 participating companies, please go to www.privateplacementletter.com.

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