Bloomberg.com: Echoes of 2007 Credit Crisis Grow Louder

Credit Weekly's latest report draws concerning parallels between current market conditions and those preceding the 2007 financial crisis, suggesting a potential "rhyming" of history in three critical areas. First, the report highlights the resurgence of large leveraged buyouts, drawing a comparison between the $44 billion TXU Corp. LBO in 2007 and the potential $50 billion buyout of Electronic Arts Inc. today. Second, it identifies a significant accumulation of risky debt, contrasting the subprime mortgage bonds of the past with the current proliferation of private credit. Finally, the analysis observes early indicators of consumer distress, noting rising delinquency rates among subprime auto loan borrowers, reminiscent of the mortgage payment defaults observed prior to the 2007 crisis.