Investing - Brookfield Asset Management

Distress Investing Environment – U.S.
• Continued macro challenges INDEX PERFORMANCE (S&P 500)
INDEX PERFORMANCE (S&P 500)
– High levels of unemployment and fiscal deficits 120.0
– S&P downgrade
110.0
– Housing market is still in disarray 100.0
– Political posturing
90.0
• Certain industries and regions remain fundamentally
challenged (housing, forest products, merchant power,
U.S. Southwest)
80.0
Dec-10 Feb-11 Apr-11 Jun-11 Aug-11
INTEREST INTEREST RATES RATES AND AND BOND BOND YIELDS YIELDS
10.00
• More recently, credit markets have weakened
• Capital is now more expensive, or unavailable, for
4.00
lower grade issuers and weak sponsors
2.00
8.00
6.00
• Current environment should enable Brookfield to
surface opportunities in property, infrastructure and
private equity
-
Dec-10 Feb-11 Apr-11 Jun-11 Aug-11
Barclays Capital US High Yield: B
Barclays Capital US Aggregate: Corporate Investment
Grade
Source: Economist, Standard & Poors
161
| Brookfield Asset Management Inc.