Next year General Motors Corp. will default and the credit cycle will turn, predicted panelists on an industry roundtable. The events will trigger a wave of losses throughout the synthetic CDO market, despite the majority of transactions now featuring a manager, they said. "Most investors will not understand what is happening until it is too late," said Jonathon Leredo, partner at London-based CDO manager Solent Partners. Other panelists said it is impossible to predict the exact nature, or extent of the damage.
Players Predict GM Default, Credit Cycle Turn
