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发表于 2011-9-17 13:16
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Current situation9 G7 ]4 b, v& G% S4 r
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
+ B! q4 J6 G+ R+ `% ias funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
4 {! G+ }( L8 X; ~6 o- n6 s. S9 s* Dimpose liquidation values.
" }2 q; c0 ]+ I4 j6 I! B8 e In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In2 P! }5 ?9 e- z( f" R
August, we said a credit shutdown was unlikely – we continue to hold that view.2 z3 L1 P) o: |7 E- i; K
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
$ D5 M7 O, t: d* F+ p$ b( V/ C' zscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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g. J" m4 m g+ m1 ?- X% RA look at credit markets
/ W$ ]2 x- y6 Z Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
( v3 W: t, y5 J2 \$ a& W* u: ~September. Non-financial investment grade is the new safe haven.
9 a' S1 |4 T. [5 x" |: z High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
5 j* c% o) ]9 u# v- Kthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
: D4 [7 c) l/ ebillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
' |0 x1 J# O: L1 ~- Gaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
* T: D- u; R X- f' kCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are7 G2 {, O: j5 N8 s9 ~4 e& _/ f0 G& f
positive for the year-do-date, including high yield.
- S3 ] b. g. q Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
F, E6 U7 l9 W4 b4 @% N* kfinding financing.
+ V& f+ S1 V1 ~: _4 y Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
! x% ?$ n. ?2 k0 ^9 hwere subsequently repriced and placed. In the fall, there will be more deals.+ H+ c) G7 j6 w i: K' j; [
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
/ p/ H6 S; S0 u/ \- H0 y5 \7 bis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
3 C8 u4 X- D$ l$ M3 i4 sgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for1 e- Z" _5 G9 r8 {* d
bankruptcy, they already have debt financing in place.
$ I/ P& x! n6 K3 T. N European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
1 }# _9 N* O+ Gtoday.
/ \; g/ [+ `3 m Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
' L0 r- i9 M) i4 B: v7 z9 V( ^! Hemerging markets have no problem with funding. |
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