Asian-based asset management firm, First Prime Group, are thought to be expecting fresh and sustained pressure to befall credit markets following US Congress’ rejection of the $700 billion bailout package for the banking system.
Sources close to First Prime Group said that policymakers were incredulous at the result despite wide acknowledgement the outcome was likely to be a close-run matter.
One of the First Prime Group sources alluded to the fact that the severity of the sell-off in US stocks would be useful if only to remind naysayers of the consequences of a similar rejection of an amended bill. Many commentators blame the result on a fundamental reluctance to help Wall Street banks who are seen as largely responsible for the crisis.
Although the Dow Jones Industrial Average fell by nearly 800 points, First Prime Group apparently believe that an amended bill will eventually be passed which should draw a line under prices.
