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发表于 2011-9-17 13:16
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Current situation0 }7 a# A+ G1 j4 Z7 [
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
% b5 n, o- T) j& G9 ?as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
% W3 j) q. \% Qimpose liquidation values./ d6 b9 [/ _, `4 h5 P! }( c
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In0 C) {+ ~6 ?" [ e
August, we said a credit shutdown was unlikely – we continue to hold that view.) q1 h3 q7 W o5 ]; n1 C4 L+ F
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension& t, i' Y! c# x; p1 H
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets& d n2 _! l- i2 d2 z
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in M7 ^9 R" G6 y5 f8 x5 R
September. Non-financial investment grade is the new safe haven.
4 K. h& u1 E! |" [7 _5 W High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%! Q/ A0 ~, h& i: @% x
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1' C7 m3 R7 f4 B8 {& [% ~+ x0 u4 {
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have0 n ^" `2 H8 Y* |! [9 i
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade f: a# u, `( _$ c) M5 J$ G
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are3 l* R5 U* O. A V& g2 P
positive for the year-do-date, including high yield.' R f3 h7 q/ s$ g6 `2 j0 }
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble/ D- P( R. o8 [5 m9 e
finding financing.% c2 h t w. E- A% c
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they7 W+ ]7 d& A4 z, n( A5 {2 B
were subsequently repriced and placed. In the fall, there will be more deals.
5 V1 S, x2 e! w3 ]- [0 @. U; F Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and# U* U4 d0 Z( Z' l$ O
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were, {' J4 I/ I+ W4 b2 Z
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for0 ]; `& ^& Q7 a9 z
bankruptcy, they already have debt financing in place.
+ G$ `2 Q5 V7 V. A; Y! ~2 J, p European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
3 S7 T5 g! z4 T3 m# L3 N4 g2 ltoday.% A1 }7 a& _1 a! i
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
" l: I) d( J3 L# O5 ]emerging markets have no problem with funding. |
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