"For the first half of the year, the S&P Loan Index return was up 32.2% as compared to a 2008 record loss of 29.1%. The Merrill Lynch High Yield Index returned 29.4% through June as compared to a loss of 26.4% in 2008.Returns on both entities increased further through the end of July 2009. These positive indicators are tempered by continued weakness in consumer spending, consumer confidence, retail sales, and a very high unemployment rate.We characterize the current environment as one of stabilization. Capital markets are calm, liquidity has improved. But as a general rule, businesses continue to drive earnings growth more through cost reductions than revenue improvements."
"As you are undoubtedly aware the global debt markets faced a looming wall of debt maturities over the next few years with approximately $560 billion of leverage loans and $420 billion of high yield bonds maturing prior to 2015."