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发表于 2011-9-17 13:16
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Current situation" r$ a6 u8 [. S# o1 w
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long5 w5 N; Y: }1 a3 R( m$ S5 G" @3 W1 u
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may! V L6 q& c, O9 w
impose liquidation values.4 B9 r" w3 n, h# L5 C% Z
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In$ A/ m! z- r1 d" [
August, we said a credit shutdown was unlikely – we continue to hold that view.$ {8 \3 K: O: M4 h# r
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension& r& ~( Q# Q& l) x+ v5 k m! C, z
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.0 d+ o6 M, ~2 W! H
" l! S' w4 q7 A4 RA look at credit markets
0 {/ f; W j% H5 ] Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in: u6 ]2 U6 T- P' e$ \' V+ }% k
September. Non-financial investment grade is the new safe haven.
. b _& h9 c& ^4 G( G. {3 Y High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%6 a& ?0 ?! [3 ^. M% V: a( Z7 m
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $10 v" h. r! p( z2 X
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
1 ^5 ]" F7 H) q; j1 @1 iaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
* U6 [( m, Z! {6 C2 O7 ~' Z$ NCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are/ |$ t6 |- {8 l$ I* b- K9 q
positive for the year-do-date, including high yield.
- T8 X0 P3 ~0 p3 w Mortgages – There is no funding for new construction, but existing quality properties are having no trouble# K4 g) |: n3 K; M6 S# ~. z+ ^
finding financing.: H' r) c2 [" L
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they, Z# Z; t% h" U) W
were subsequently repriced and placed. In the fall, there will be more deals.6 [# v3 }/ ~* Z- K* n
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and* K* _0 Y* F! f+ n" a7 D& P X
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
. j! Z$ a1 A! p* Y/ e! Y1 lgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for6 Z" ] y( x. o6 k, \" C
bankruptcy, they already have debt financing in place.
4 W9 I: Y5 G" N/ U# X2 U6 l European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain6 o: n- p0 Y' G/ k
today.
: |/ u8 E. d8 P: v& @ Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
. T- J6 y& E" y3 ^# i1 D4 z, Uemerging markets have no problem with funding. |
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