Investing - Brookfield Asset Management
Investing - Brookfield Asset Management
Investing - Brookfield Asset Management
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Distress <strong>Investing</strong> Environment – Europe<br />
• Sovereign default risk significant concern with<br />
global l implications<br />
• Weak economic data in Europe has added to<br />
negative sentiment – German economy grew by<br />
only 0.1% in Q2<br />
• Bank liquidity risk remains a concern with<br />
75<br />
regulators failing to address market fears<br />
50<br />
– Recent bank trading values and corporate<br />
and high yield spreads have weakened<br />
substantially<br />
INDEX PERFORMANCE INDEX PERFORMANCE<br />
150<br />
125<br />
100<br />
MSCI Euro<br />
MSCI EUR Bank<br />
Sep-10 Dec-10 Mar-11 Jun-11 Sep-11<br />
Source: www.oanda.com, CapitalIQ, Economist<br />
BOND SPREADS<br />
BOND SPREADS<br />
• Opportunities for distress across sectors, but<br />
particularly those dependent on bank financing<br />
– Potential bank asset sales represent<br />
significant opportunity<br />
2000<br />
1500<br />
1000<br />
Euro bb-b non-financial fixed and floating rate …<br />
Euro non-periphery non-financial<br />
• <strong>Brookfield</strong> is very well positioned to pursue<br />
500<br />
distressed real estate and infrastructure<br />
investments in Europe 0<br />
1/4/2008 1/4/2009 1/4/2010 1/4/2011<br />
162<br />
| <strong>Brookfield</strong> <strong>Asset</strong> <strong>Management</strong> Inc.
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