Thursday, September 10, 2009

>REVIVAL IN GLOBAL PRIMARY MARKET (NETWORTH CAPITAL)

A Sneak Peek
Market Return Vs Capital Raising

A near 61%+ rise in the world markets since March 9th has
provided corporate a much needed opportunity to raise capital
in form of debt and equity.

Since Jan 1st 2009 to date, companies across the world have
raised nearly USD 5,075bn out of which nearly USD 4718bn
(93%) has come in form of debt while USD 357bn (7%) has
come in form of Equity.

Out of the total of USD 357bn raised in equity, nearly USD
207bn of equity has been raised in the months of June, July and
August. Indicating corporate taking advantage of the rally to
swap high cost debt and re-capitalizing by raising new equity.


Large Equity in Offing


In the current environment this fresh capital is like a lifeline
for certain banking and real estate companies while other
took the advantage of the lower interest rates to swap high
cost debt.

In a way this rally has provided a great opportunity for
certain companies to emerge stronger.

A near 61% rise in the market past March, 2009 has
rewarded investors who participated in the rally. Improving
Economic numbers and corporate profits coupled with
rising liquidity augur well for Capital Markets. Hence, we
expect Primary & Secondary Markets to remain buoyant.

To see full report: REVIVAL IN MARKET

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