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发表于 2011-9-17 13:16
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Current situation5 B9 Q$ H& u" Y7 Y l8 |/ V
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long- a2 x# ~9 B, C* b5 M' l0 h0 z9 _, i' P
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may( K* |$ t7 V. I1 Z
impose liquidation values.; H( k q3 v8 w @- c! D
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
r6 z+ K. ^ a% D! ]+ B# [ k! bAugust, we said a credit shutdown was unlikely – we continue to hold that view. ]4 n" o/ |2 }9 x& W8 a1 j
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
# ]! D) l5 C, O4 n5 |0 _! m; Oscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets- o, H3 ^' R2 M; y
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in# D" \2 G" `* D. o& j5 Y! ~
September. Non-financial investment grade is the new safe haven.
) O( p+ Y+ }/ M/ v+ K; H High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%) ]8 W" H, D! r/ |
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1& T! R/ G: m( S3 L5 I
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
; R$ A4 Q/ E/ n A3 faccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade, d9 j# k& c- b" l/ r
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are3 R2 m2 Q$ F( t i0 H
positive for the year-do-date, including high yield.
( q0 X `4 e) V' S2 k8 v/ P8 J6 y& D Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
! I' d/ f+ ^4 o' g7 q w$ bfinding financing.
* e2 B1 e! v; d2 [' |+ v. q Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
+ G- B( o" \. O; d+ F( [were subsequently repriced and placed. In the fall, there will be more deals. M% t* y2 k$ O/ E, j
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and, t5 A. s3 R! x: A/ B' B7 i
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were9 z* Y# ~) v5 b
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
! U) ^5 V% Z7 U4 `4 j, \. Fbankruptcy, they already have debt financing in place.
5 q. r9 w' l1 k* y+ _ European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain4 [# |! f0 p U" i$ E
today.3 ?# T1 A! G; N! w# k8 D3 ?
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
3 z6 p; ?- J" d3 F5 `/ Iemerging markets have no problem with funding. |
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