Barclays Capital

Barclays' predictions for 1998 include: 1. The first few weeks of 1998 will see a rush of deals launched into the syndicated loans market. This strong deal flow will be rapidly reinforced by many emerging market borrowers looking to resume their international borrowing programs. 2. Initially, pricing differentials will compress further as quality credits find themselves paying more for funding, and will then rapidly decompress as the year proceeds. 3. Investors will become even more selective and the market will continue to move from being origination to distribution driven.