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发表于 2011-9-17 13:16
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Current situation$ L* i' {( i9 Y' A- b% ]
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
8 }! V% ?8 v# d! Ias funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
. R# [6 P$ O; y9 u3 x3 |* iimpose liquidation values.
( ~9 O0 W0 e: D( Z8 i) D: @* [( W In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In' u! m/ g. l# a# k+ c; B8 z
August, we said a credit shutdown was unlikely – we continue to hold that view.; H' \1 h5 w, q1 L- A [
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
/ i) d& }% A( I" x- _scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets
& B3 k+ R8 \9 x Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
( b: o* `3 J3 q" tSeptember. Non-financial investment grade is the new safe haven., u9 c. Q4 ~( n; R3 R3 Z) p: i
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
# C0 O5 z4 }, e* Ithen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $18 N0 Y. |6 n$ `' \
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have0 F1 b, u; t8 P$ {2 ]
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
! r6 M# Z: _9 p" _CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
6 _/ P. O8 b0 Y. _positive for the year-do-date, including high yield.' x0 b! q/ o M
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
1 y. ?9 Q3 i) L+ E# j V0 p4 n1 bfinding financing.
- v' q/ \: I2 v$ {3 d Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
" K; i6 X$ J9 S6 Swere subsequently repriced and placed. In the fall, there will be more deals.
! @9 g* f3 N* b, _) {) {7 R5 G Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and8 |4 c& R+ F, y0 l
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
0 `5 T3 t) M8 u: m" o# m; ygoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
+ B+ w0 g: J! h3 O+ vbankruptcy, they already have debt financing in place.# i, U( T: I& I9 Z9 ?
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
/ [9 M6 U0 f- f( ~ c1 itoday.
X$ G% H( P+ h( l Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in. Y+ N3 U! g* i$ n) t9 l" H
emerging markets have no problem with funding. |
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