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发表于 2011-9-17 13:16
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Current situation& a0 I! i+ Q* O8 A) S! }. x) p" O
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
7 ?7 w0 X! g4 V- Z$ B7 Yas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may4 m6 j$ s; q# ^8 ~* k- U
impose liquidation values.
2 ^( L1 W; n" ~5 o; z0 m' j! H {8 P! J In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
4 M5 i3 ~9 q2 E' Q) x1 Q' AAugust, we said a credit shutdown was unlikely – we continue to hold that view.* W" F- ^0 C- d2 a
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension C1 s7 h* D+ j( \
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.) L H/ W! g& R' A1 Z
! Y2 S/ i+ Z" X& d! nA look at credit markets# n4 Z1 S0 L3 _. j& e9 t* }
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
' ~; Q# \' b0 u% s" N( FSeptember. Non-financial investment grade is the new safe haven.9 h! u |+ ^4 r1 k1 X% v
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
5 I8 u* z4 c" g/ @. s# H) {then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1' k P2 B+ V: b/ v$ A
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
6 z! ?# a6 \" }; p& @8 Q7 f4 k3 zaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade f) ~: y7 j$ Y3 D/ y( F# x
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are% n3 ^2 t* I0 B
positive for the year-do-date, including high yield./ [- K/ O: K4 Q2 P& R( f2 N; L
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble2 }. w! Q7 |6 X; g' U" W5 [% U
finding financing.' Z9 j1 M0 Q' A6 p3 x
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
. O V: x4 o9 Owere subsequently repriced and placed. In the fall, there will be more deals.
8 b9 g3 e% x5 k1 _$ D Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
( z! ~% a5 u7 t) p) {is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
4 j" ^) A; D. N0 R* `) s, Igoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for/ u1 h; W$ q+ o3 T) ~, P
bankruptcy, they already have debt financing in place.
' n4 K' ~5 E5 z) s9 |0 s) h European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
. I; e5 G j6 i6 K1 M5 V8 [+ |/ ?3 }today.2 K! Y) G; {1 u) f
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
# n# q$ D8 ?+ Q% ~0 hemerging markets have no problem with funding. |
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