Global Investing

from Commentaries:

Bankruptcy-related M&A at 5-year high – more to come?

July 10, 2009

This week's Thomson Reuters Investment Banking Scorecard shows bankruptcy-related M&A at a five year high.

Market pressure will build diamonds

April 23, 2009
The financial deluge will bare real gems for investors flush with cash, but watch out for the rubbish, the super-rich have been told at a Geneva conference. The first round of quarterly results has brought some pleasant surprises, but investors should be cautious and cherry pick if they want to hit the jackpot, was the mantra.
“This is a once in a lifetime opportunity. But you have to pick the winners. You have to separate the diamonds from the tatt,” said Giles Worthington, head of European equities at investment fund M&G Investments.
This is more easily said than done, as many companies looking rock-bottom cheap may appear so just because they are on the verge of bankruptcy. And the bottom of the current downward cycle is not yet in sight.

 ”It’s not just because we had a year of correction that the next year will be positive,” said Ariel Sergio Goekmen, an economist and a director at Credit Suisse’s head office who looks after wealthy families’ investments. “The recession could be deeper than one expects. We have not yet seen the darkest side of the night.”