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发表于 2011-9-17 13:16
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Current situation q% s m6 M% w& L) P m
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
+ ^& _/ H( V: d$ I# t$ ^as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
Z3 ~: m" Y# o8 g3 Pimpose liquidation values.) T% I/ g6 Q. P- E* u+ \
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
5 G) T; |# o x7 ]" {2 j/ P* B YAugust, we said a credit shutdown was unlikely – we continue to hold that view.3 ^. i+ u+ q! j
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension& |2 b$ i; m5 i. Q, [; @ J/ r& ?
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
3 Q2 o- v5 G) a1 g* K) G) w: @
8 ^% {, q# _, t8 e1 h3 VA look at credit markets; _' B) A1 o) P1 j3 W0 D
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
2 A. z/ m: W% s9 o# ]# E, r) fSeptember. Non-financial investment grade is the new safe haven.- }6 m4 `7 O/ j/ c# Y( Z* w% ]+ y: R
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%9 z/ G% s/ B# ^" O( a0 _
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
1 S. m" Z. D! I Ubillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have0 P: c) X9 H5 x$ N! f; h
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
% \1 h- n4 `4 g! |- M0 N+ c; MCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
. g8 I; u; ?5 I3 \4 v+ ppositive for the year-do-date, including high yield.* E$ t* V5 m) {3 r
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble* G/ | |( O# c/ {
finding financing.% M- T# ?, B: h/ X
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
* e G: A7 T' D4 F- o: nwere subsequently repriced and placed. In the fall, there will be more deals.
2 t5 w# l$ m+ u5 ^9 B/ [ Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
8 }- |6 f% i' l) N/ G2 }4 ~is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
! y' B% i* \: O/ e& Ogoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for8 T. a% s. c+ O: `/ _7 }
bankruptcy, they already have debt financing in place.
6 ^8 N: d) `, W2 t European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
3 X. }9 a- t- x4 Q& O2 Ytoday.
3 t* y7 l' ~6 C' k: g& K Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
& Z/ Z: R4 ^8 c/ J& G& ^emerging markets have no problem with funding. |
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