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发表于 2011-9-17 13:16
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Current situation" Q: b* ^& G2 L/ {
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
+ I" n( T( y" t; ~' T' Zas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
" R0 T! k1 w; o3 x8 Ximpose liquidation values.2 K8 \5 j/ f0 B7 I
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In& a( v0 e j& M3 o( i$ k2 Y
August, we said a credit shutdown was unlikely – we continue to hold that view.$ v# x9 i" y5 V( r1 G
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
1 y0 \( o( e9 Z& \* f1 Qscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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( d; P9 R. [2 F7 j$ [ }: G3 R6 JA look at credit markets( k; @# T& J% E( s
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
$ }5 M1 Q% ~/ V1 I1 B' y/ h pSeptember. Non-financial investment grade is the new safe haven.- l& m! R9 s; }- H
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
$ v5 ~- e+ H0 l8 Y7 o: s! Sthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1" H1 [) ?1 x: F% U
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
9 f; R3 K$ \3 E" D" A( naccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
0 A; V1 M+ R# `) Y8 h: cCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are+ D7 n! H M: n" y& m5 |; N
positive for the year-do-date, including high yield.( a/ {) T8 g+ L( }8 k2 n
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble1 T W% [8 w2 x ]
finding financing.
2 C. Y+ I1 d# W: {5 q. N Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they; x6 r1 G4 [" j2 s4 E+ w5 X
were subsequently repriced and placed. In the fall, there will be more deals.+ M0 C$ x1 b' S# ]$ d( `: u+ t
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and, F: f' J3 P9 I [2 y
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were& e) e% R, z0 b& {8 b. i7 g* h
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
' O- D% L. s" kbankruptcy, they already have debt financing in place.
+ t5 T0 ?- g6 p J8 B N European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain& }( X- a; ?# p1 ?9 H+ x6 Y
today.: g9 Z5 D7 | f m% h
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
2 [7 }# O2 Y# yemerging markets have no problem with funding. |
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