In the last few years, many businesses have benefited from
strong global economic growth, low levels of nominal interest
rates and abundant global liquidity. As a result, the global
default rate touched a historical minimum and profits
grew significantly. More recently, however, due to the subprime
crisis, interest rates have risen while global levels of
liquidity have fallen. The credit cycle has turned and default
rates are moving back towards the long-term average. This
is likely to trigger continued corporate restructuring which
will, in turn, offer business opportunities for the investment
banking business.
At the same time, the internationalization of business will
continue, particularly in Asia, where strong economic growth
is allowing local businesses to gradually become net buyers
of assets abroad (especially in the US and in Europe, as well
as the commodity-rich countries of Africa and Latin America).
This trend will provide business opportunities for UBS
advisory experts, who are able to assist businesses interested
in making acquisitions around the world.
