Are investors’ decisions over risk and return becoming more rational? To what extent do the market’s fears over headline risk, as opposed to credit, determine what advice you give to clients?

Miles Millard, European head of debt capital markets, Deutsche Bank
Investors have built up significant pools of liquidity over the last six months that they are now putting to work as the headline risks are easing and spreads have stabilized at levels that offer value.

Jean-François Mazaud, deputy head of capital raising and financing at SG
Investors’ decisions may have become more rational, although we are of the opinion that they are not at all the only parties responsible for the irrationality of the market in H1 2007.