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发表于 2011-9-17 13:16
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Current situation* E! \2 ^$ a" f2 W( j7 K
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
6 `' b6 b, p: m5 _2 n' H( uas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
/ U+ C& S k' Z" Timpose liquidation values.( J# `, o* p# G+ K! [6 O. w- A. z
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
. q( Z* G' x1 K! p# g2 K: f+ WAugust, we said a credit shutdown was unlikely – we continue to hold that view.
# `- H. ^; x7 V' _7 [) b The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
% {( P- X/ Z( M6 q6 k* x7 Fscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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4 {0 a% _ f% M1 g, m$ N8 H. hA look at credit markets8 I+ Q( t. ]4 d2 E* M- ~; t6 @
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in. q# Q8 ]0 R& P3 W" Y" b4 g
September. Non-financial investment grade is the new safe haven.
* x! O* `( q$ Z' O High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%0 U+ F5 U- @ Y; M1 s- q
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
* w0 s* q f5 F' w$ Y6 Hbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have! f) z& j" N9 o$ n+ r3 @
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
- s8 M+ J' n% M- XCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are) b8 ?1 n% n' K( k a
positive for the year-do-date, including high yield. U( x1 \% Y( s5 s5 K
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
, u. ?0 A5 X8 B' K/ O! Yfinding financing./ C/ a$ i$ o. n$ s' O' }" X+ j
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they- L5 y& H' |. A! I
were subsequently repriced and placed. In the fall, there will be more deals.
$ e& E3 V4 _0 h! T0 u/ R C* ^ Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
" u! v: A( C) P# W' mis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were! \6 A S, b& O
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
/ ~4 i% M% W1 |bankruptcy, they already have debt financing in place.2 ~% x3 f* ~$ r2 K6 i0 T
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain: P' x: _, u4 o. \, b0 V$ R
today.+ n8 a0 f& U; h; N0 u' d8 I1 j
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in. J( K8 f$ q; \$ S0 z* a# `
emerging markets have no problem with funding. |
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