The junk bond issuance coming to market over the next few weeks is shaping up to be the next big story for the markets. Debt, the lifeblood of the mergers and acquisitions world, is suddenly more difficult to issue.
Christian Oberbeck, Managing Director at private equity firm Saratoga Partners, joins Squawk Box at 6:20 a.m. EST to tell CNBC's Joe Kernen we may have passed an inflection point.
Oberbeck says the situation with Bear Stearns - its decision to bail out one of its ailing hedge funds, the decision by Merrill Lynch and other creditors to seize assets from Bear's funds, and the public controversy surrounding these circumstances - shows us something is definitely wrong with the market's current assessment of risk. Instead of the big investment banks resolving these problems on their own, we saw a very public breakdown in the system, widely covered by the media.