In the News:
Christian Science Monitor

In an interview with the Christian Science Monitor, portfolio manager Axel Merk cautions that the corporate sector may have difficulty rolling its debt in 2009.

"The sharp rise in government spending may come at a cost to the economy, worries Axel Merk of Merk Hard Currency Fund in Palo Alto, Calif. 'It will make it more difficult for the corporate sector to raise money,' he predicts. 'There is a huge amount of corporate debt to be rolled over next year. '

Mr. Merk says banks' aversion to making loans will continue into 2009. As the year ends, corporate bond spreads that is the difference between Treasury bills and investment-grade corporate debt are at a record high. 'I think financial institutions are in a survival mode and that will continue,' he says."