1. Morningstar June 2008 Richard Quin - Director, Credit Suisse
Portfolio Manager APAC, Leveraged Investments Group
Alternative Investments
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITED
ABN AFSL
Asset Management (Size 9 pt, Bold); use all CAPS if legal entity

2. Disclaimer
Issued by Credit Suisse Asset Management (Australia) Limited (CSAMA) ABN AFSL CSAMA has used its best endeavours to ensure the accuracy, reliability and completeness of the information contained in this presentation. Subject to law, CSAMA, its directors, employees, affiliates and consultants do not provide any warranty or accept any liability for errors or omissions or any losses or damages suffered by the recipient of this presentation or any other person.
This presentation has been prepared for general information only for the intended recipients. It does not take into account an individual’s objectives, financial situation or needs, which are necessary considerations before making any investment decision. Opinions constitute our judgment at the time of issue and are subject to change.
Offers for investments in the Credit Suisse Private Investment Funds, Select Investment Funds and Wholesale Funds are made in, or accompanied by a copy of the relevant current Product Disclosure Statement (PDS). You should consider the PDS in deciding whether to acquire or continue to hold the product. If you wish to invest, you will need to complete an application form contained in, or which accompanies the current PDS. Please contact us directly should you have any queries in relation to the information in this presentation on , or to obtain a copy of the PDS.
Net Returns are calculated using pre-distribution month end withdrawal unit prices, and assumes all income is reinvested in additional units. Total returns are calculated by adding back the Management Costs deducted. As benchmark performance is gross of fees, we recommend that the total returns performance figures be used when comparing our performance with the relevant benchmark performance. Past performance is not necessarily indicative of future performance. Returns are volatile and may vary from year to year.
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITED
ABN AFSL

3. Investment grade spreads at recessionary levels
31 Jan 1991 BBB 270, 5.16% excess returns 31-Jan- 1992
11 Oct 2002 BBB 365, 13% excess returns by 31-Oct-2003
Source: Lehman Spreads to 6th June 2008
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITED
ABN AFSL

4. Commercial Mortgage Backed Securities - CMBS
Source: Lehman Spreads to June 6th 2008
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITED
ABN AFSL

5. Bank regulatory capital credit spreads from AA rated banks?
Source: Lehman Spreads to June 6th 2008
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITED
ABN AFSL

6. High yield bonds spreads not near recessionary levels
11 Oct 2002 Single B 1,044bps, by 17 Oct 2003 excess returns of 30%.
11 Oct 2002 Double BB 700bps by 10 Oct 2003 excess returns of 19%.
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITED
ABN AFSL

7. Loans look cheaper than High Yield Bonds
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITED
ABN AFSL

8. Peak in excess returns follows peak in spreads – Investment Grade
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CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITED
ABN AFSL

9. Peak in excess returns follows peak in spreads – Leveraged Loans
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CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITED
ABN AFSL

10. Peak excess returns follows peak in spreads – High Yield Bonds
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CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITED
ABN AFSL

11. Summary Higher spreads, Fees, Covenants and Discounts
Forced deleveraging repriced asset classes early in the cycle
Technical dislocation (liquidity crunch) or credit crunch – weeding
Risk still remains general or systemic and is not yet company specific
Better lending term good for banks and credit investors
Higher spreads, Fees, Covenants and Discounts
Poorer fundamentals
Priced for disaster not perfection.
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITED
ABN AFSL

12. Current market opportunities
Risk Management
Less cash, Secured but look for opportunities down the capital structure
2008 picking through the wreckage
Assets sold by geared investors: loans, CLOs and bank capital securities
Hedging company specific risk or idiosyncratic risk
Basis trades, Equity delta, a few short trades
Tactical trading
Not a deer in the headlights.
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITED
ABN AFSL