But a further significant consideration towards year-end has been the fear of possible defaults on sovereign debts after the decision by Dubai World, a government-owned company, to seek a moratorium on the servicing of its debts, and the downgrade in the credit rating of Greece because of its deteriorating fiscal situation.

Gangnam-Gu, Seoul -- (SBWIRE) -- 04/03/2011 -- Government bond markets have ended 2009 on a very disappointing note. A further improvement in sentiment about the prospects for the global economic recovery, and indications that some central banks might be preparing to introduce early "exit strategies" from the measures that had been introduced to counter the recession, have been important factors in producing a more cautious attitude amongst bond investors. But a further significant consideration towards year-end has been the fear of possible defaults on sovereign debts after the decision by Dubai World, a government-owned company, to seek a moratorium on the servicing of its debts, and the downgrade in the credit rating of Greece because of its deteriorating fiscal situation.

Shaw Capital Management Korea February Newsletter: There was always the risk that the funding requirements resulting from recent policies, and particularly from the measures to counter the latest recession, would prove to be a massive burden for the global bond markets, and this has now proved to be the case. The Dubai government appears to have been rescued by help from Abu Dhabi; but it is still not clear whether there will be help for Greece and other periphery countries of the euro-zone that are in difficulties, and doubts have also been expressed about countries outside the euro-zone, including the UK, if central banks do not implement "exit strategies" carefully, and credible plans to reduce the massive fiscal deficits are not introduced fairly quickly.

Shaw Capital Management Korea February Newsletter: There was always the risk that the funding requirements resulting from recent policies would prove to be a massive burden for the global bond markets.

These doubts have already led to a significant widening of yield spreads on bonds of member countries of the euro-zone, with Greek bond yields now more than 2.5% higher than German bond yields; and even 10-year yields on US bonds and UK gilts have risen to the 4% level as investors have reduced their exposure.

Shaw Capital Management Korea February Newsletter: Our position on the prospects for the bond markets remains unchanged. We still expect that the recovery in the global economy will only develop at a very slow pace, and that "exit strategies" will only be introduced very gradually. The background situation will therefore continue to provide some support for bond markets.

But the timescale for the implementation of "exit strategies" is shortening; and the massive fiscal deficits are already placing great strains on the markets. The fears of defaults on sovereign debt may well be an overreaction; we expect, for example, that the weaker members of the eurozone will receive support from the stronger members to prevent defaults; but higher bond yields appear unavoidable. Prospects for all the major bond markets are therefore very unattractive.

Shaw Capital Management Korea February Newsletter: The performance of the US economy remains a critical factor in assessing those prospects, and the latest evidence has become more positive. The growth rate in the third quarter of the year has been revised down again; but since then there has been a lower-than-expected fall in non-farm payrolls, and an improvement in consumer sentiment that is reflected in a reasonable level of retail sales in the run-up to Christmas. Weaknesses remain, especially in manufacturing, and new house sales fell sharply in November; but a growth rate around 2% is expected this year. The Fed appears to agree with this more optimistic view, arguing in the statement after the latest meeting of its Open Market Committee that economic activity is continuing to pick up, and that the deterioration in the labour market is abating; but it is remaining very cautious. Interest rates are likely to be at low levels "for an extended period", and the quantitative easing programme has been maintained, although some of the emergency liquidity measures will be withdrawn. It is clearly anxious to avoid doing anything that might harm the economic recovery.

This should continue to provide some support for the bond market, even though the Fed will no longer be buying Treasuries and other corporate bonds; but it does appear that this will not be enough to offset the effects of the massive fiscal deficit, which is expected to reach $1.5 trillion this year, and to remain high well into the future.

Shaw Capital Management Korea February Newsletter: Debt issuance rose to over $2 trillion in 2009 to finance this deficit, and to replace maturing bonds; and the latest decision to take advantage of the unexpected windfall from the repayment of bank bail-out funds that are no longer needed to provide new resources for job creation is a clear indication that there are no plans to take early action to reduce the deficit.

It is not surprising therefore that bond investors have been reducing their exposure to the market, and that the yield curve has continued to steepen. In the absence of any change in policy, this process is likely to continue, and push overall yield levels even higher.

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Shaw Capital Management Korea - Investment Innovation & Excellence. We provide the information; insight and expertise that you need to make the right investment choices. Shaw Capital Management based in Korea typically offers its clients such services as asset allocation and portfolio design; traditional and non-traditional manager review and selection; portfolio implementation; portfolio monitoring and consolidated performance reporting; and other wealth management services, including estate, tax, trust and insurance planning, asset custody, closely held business issues associated with the establishment or expansion of a family office, the formation of family investment partnerships or LLCs, philanthropy, family dynamics and inter-generation issues, etc.

Every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor.

http://www.shaw-capital.com

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This penstock feeds the water downhill to a generating station. The natural force of gravity creates the energy required to spin the turbines that in turn generate electricity. The water leaves the generating station and is returned to the river without altering the existing flow or water levels.

Gangnam-Gu, Seoul -- (SBWIRE) -- 03/28/2011 -- Plutonic Power Corporation develops environmentally friendly run-of river hydro projects in British Columbia.

Now before we get into the specifics on this one, let's first answer the question: What is run-of-river hydro?

Plutonic defines it quite well, stating that run-of-river projects do not actually require any damming of water. Instead, some of the water in a river is diverted and sent into a pipe called a penstock.

This penstock feeds the water downhill to a generating station. The natural force of gravity creates the energy required to spin the turbines that in turn generate electricity. The water leaves the generating station and is returned to the river without altering the existing flow or water levels.

All of Plutonic's component specifications and construction methods are consistent with providing the least amount of environmental and visual impacts. In fact, in a comparison of environmental impacts, the Ontario Power Authority shows run-of-river hydro to have less of an impact than solar and wind. And of course it rates much better than oil and coal. "In a comparison of environmental impacts, the Ontario Power Authority shows run-of river hydro to have less of an impact than solar and wind. And of course it rates much better than oil and coal."

Shaw Capital Management Korea News: Operations. Plutonic Power is in the process of building out a number of run-of-river hydro projects in Canada. The first to go online will be the East Toba and Montrose project, which is expected to begin operations later in 2010.

The combined installed capacity of this one will be 196 megawatts. All the electricity to be generated from this project will be sold to BC Hydro under a 35-year sales contract.

In the third quarter 2009, 74 percent of the project's plant construction was completed, and 73 percent of the penstock was completed. 79 percent of the construction of the transmission line was completed.

Shaw Capital Management Korea News: Other projects include: Upper Toba Valley Project (3 facilities). Estimated installed capacity of 166.3 megawatts when completed. Bute Inlet Project (17 facilities). Estimated installed capacity of 1,030 megawatts when completed. Freda Creek Project (1 facility). Estimated installed capacity of 35 megawatts when completed.
The BC Hydro Connection. In June, 2008, BC Hydro launched a Clean Power Call to develop new energy operations. A Request for Proposals followed for projects using proven technologies, such as hydro, wind, solar and geothermal.

This Clean Power Call aligned BC Hydro with the BC Energy Plan which calls for 90 percent of electricity in the province to come from clean or renewable sources and for all new electricity generation projects to have zero net greenhouse gas emissions.

The intent here for BC Hydro is to successfully negotiate power purchase agreements with those chosen from a long list of proposals. … Plutonic is on this list.

And on November 19, 2009, Plutonic Power received notification from By Hydro that the Bute Inlet and Upper Toba Valley Projects will be approved. These projects were proposed jointly with GE Energy Financial Services.

The GE Connection. In August of 2006, Plutonic Power granted GE Energy Financial Services the exclusive right to make a $100 million equity investment and provide $400 million in debt financing for its East Toba River and Montrose project. In return for the equity investment, GE gets a 49 percent equity stake and 60 percent economic interest in the project. Now by the time BC Hydro issued its request for proposals, GE had given an equity contribution of about $79.3 million and extended about another $71.3 million credit for the East Toba River and Montrose project.

GE also formed a join venture with Plutonic last June 2009 to purchase an uncompleted 144-megawatt wind project in northeast BC. This is the largest wind power project under construction in British Columbia. Given British Columbia's recent announcement that it's going to establish a 'Green Energy Advisory Task Force' to help advance the Province's climate, Plutonic Power is in a good position. While Plutonic is knows for run-of-river hydro, this deal allows the company to further develop green assets in Canada. The purchase of this wind project was completed on December 11, 2009. Given British Columbia's recent announcement (November 2, 2009) that it's going to establish a 'Green Energy Advisory Task Force' to help advance the Province's climate, to reduce greenhouse gas emissions and build a greener economy, Plutonic Power is in a good position.

Shaw Capital Management Korea - Investment Innovation & Excellence. We provide the information, insight and expertise that you need to make the right investment choices. Shaw Capital Management Korea typically offers its clients such services as asset allocation and portfolio design; traditional and non-traditional manager review and selection; portfolio implementation; portfolio monitoring and consolidated performance reporting; and other wealth management services, including estate, tax, trust and insurance planning, asset custody, closely held business issues associated with the establishment or expansion of a family office, the formation of family investment partnerships or LLCs, philanthropy, family dynamics and inter-generation issues, etc.

Every investor will achieve better long-term risk-adjusted results by working with a true open architecture advisor.

For more information on this press release visit: http://www.releasewire.com/press-releases/release-85458.htm