"Carlyle had hoped to be valued at almost 10 times its 'economic net income', a metric that excludes costs associated with the listing, they said. Now, Carlyle can expect a multiple of about seven times unless market conditions improve, they added."
"The outflows came in a volatile week, with fears about a possible default by Greece weighing on investors. Also, they followed the biggest month of new sales worldwide for this market and a new record low for average junk bond yields below 7 per cent in May."
"Greek performance under the programme agreed with the International Monetary Fund in May 2010 has been quite impressive. But it has also failed to return the country to solvency. The spread between Greek and German 10-year bonds has gone from 460 basis points (4.6 percentage points) after the programme was announced to 1,460 basis points. Much the same has happened to Ireland and Portugal. More dangerously still, even Spanish spreads have reached 270 basis points (see chart). Greece, Ireland and Portugal have no chance of being able to borrow in the markets at rates they can afford in the foreseeable future."
"In a stunning reversal of fortune it is the slow-growth mature economies that now have the low equitisation ratios. Germany, which generates real gross domestic product per capita of $37,000, has an equitisation ratio of 47 per cent, whereas the Philippines, with a per capita GDP of just $3,700, sports a ratio of 66 per cent. Likewise, Japan is now less equitised (63 per cent, on GDP per capita of $34,000) than Peru (75 per cent, on GDP per capita of $9,000)."
"China has been central to the emerging markets boom, yet four years of bear markets have left its own equitisation ratio at a subdued 62 per cent – well down on the 140 per cent which marked the Shanghai market’s peak in 2007. Instead it is the countries that satisfy China’s ravenous appetite for resources that have seen their stock markets continue to balloon. Malaysia, Canada and Australia all have equitisation ratios north of 130 per cent. Chile, with a stock market worth 185 per cent of its GDP, is in a class of its own."