Earnings may surprise on the upside because of stronger than anticipated credit growth. There's been a very significant and sustained pick-up in business lending to fund capital investment.
The call investors have to make is whether Babcock & Brown's strong management team and global reach will allow them to continue to create value. So far, their track record is pretty convincing.
Babcock & Brown have consistently identified opportunities within their markets and been able to capitalize on them. Macquarie and Babcock have similarities. There're hardly any businesses in other parts of the world that are like them and are publicly traded.
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