Jlfm Editorial, Volume 6 (2), December 2007

At the time of writing, it appears that the global economic system is in the grips of a massive shock. Debt capital markets are not functioning as they have functioned over the past half decade, liquidity is tight and credit, where it can be obtained, is becoming increasingly costly. Though the global default and bankruptcy rate has been at record lows over the past three to four years, the re-emergence of inflation, capital market disruptions and an apparent move towards recession in the U.S economy seem to represent a suite of forces likely to drive bankruptcy and corporate insolvency rates higher.This being so, James Routledge's article on decisions relating to the entry into voluntary administration is particularly timely. James has a track record of providing insightful critiques into the operation of aspects of Australia's corporate insolvency regime, and his latest work on the subject only goes to further establishing his credentials as a key thought leader in the area. In a climate where financial institutions are facing considerable liquidity and funding pressure (not to mention political pressure in relation to rate setting), Josephine Donato's analysis of the impact of competition on credit risk and performance in financial services lending is also timely and interesting.Gordon Mackenzie has contributed a very interesting piece pertaining to the taxation of infrastructure, a vital and growing asset class, while Suresh Cuganesan and David Lacey provide a thought provoking discussion of issues pertaining to control systems and fraud, a perennial concern of any well governed organisation