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发表于 2011-9-17 13:16
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Current situation3 i0 p: C+ Q' }! n# e ^
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
$ q, i3 l) R0 \: c, V4 [/ [4 Kas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may% ^; |( p( [2 a$ O, \5 V
impose liquidation values.7 n" M) I5 Z6 R6 K
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
. f: k5 k* V- `: m# q9 b# C$ m/ NAugust, we said a credit shutdown was unlikely – we continue to hold that view.
1 g" I% o( D# ~4 ]- N The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
% W3 u, K3 A5 j! Iscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.4 N$ W( \3 _1 U5 K4 K
) |8 |6 c/ N, `- _ C* r) }8 I
A look at credit markets# R# Q8 s6 C! F( O
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in+ t* O( c P, e3 ?/ r
September. Non-financial investment grade is the new safe haven. L( o. M. Q4 r0 k9 Q
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
6 i' n Q% g9 V. u" s7 jthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
# \# P( Z9 ^7 E7 a5 N; Nbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
/ i6 o! a# ~6 x: g a0 Eaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
/ W% Y7 a" ~& J' gCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are& F9 D* J( B- {& r) ?
positive for the year-do-date, including high yield.
! j* e, w: p: L& I8 t Mortgages – There is no funding for new construction, but existing quality properties are having no trouble) D6 i8 l0 O; t$ w
finding financing.* a# h# |/ q& l8 B9 N
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they, M8 X6 c& G x8 j8 g$ D
were subsequently repriced and placed. In the fall, there will be more deals.
3 `# O: D1 n. V. L; W6 g Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and% O. Z& C" T( M, ]- O% S5 L
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were2 I6 q* i( g/ n/ @
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
- H% H6 P+ e1 U5 J, `& u, Pbankruptcy, they already have debt financing in place.; J+ h0 c! a" m0 u5 r
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain1 i" `. a# u8 I
today.% K* H/ g7 h" n! M
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in$ o1 x" q# l) {) n Y9 W x% C
emerging markets have no problem with funding. |
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