CDOs No Help for PE Market's Liquidity Problems

LAS VEGAS -- Private-equity-backed companies with strong credit profiles are generally on the sidelines of the financing markets, hoping that the continuing stabilization of the credit markets will save them money on refinancing transactions.

But that could turn out to be a mistake if a coming tsunami of maturing revolvers and other loans sparks an even deeper liquidity crisis in 2011, 2012, and 2013, said panelists on a State of the Senior Debt Markets panel at the ACG Intergrowth conference here Wednesday.