2008-10-18 — bloomberg.com
``There has been widespread liquidation of assets that has nothing to do with fundamentals,'' said Scott D'Orsi, a partner at Boston-based Feingold O'Keeffe Capital, a hedge fund which has $1.3 billion in assets. ``Investors in bank debt are being presented with a vast number of extraordinary opportunities; opportunities that I would characterize as once in a lifetime.''
Yeah well, the problem is that no one with actual capital has any left ("dry powder") to spend "picking up bargains". Especially when you don't know how much lower the assets will go. Anyone who has to publicly report a return or has any stakeholders who might get antsy and redeem their shares has to basically sit out.
Also, a 5.6% default rate is probably "tame".
The largest leveraged buying bing is not going to be done crashing until it is as far below fundamentals as it was above them. And that means a deeper crash than even the Great Depression.
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