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发表于 2011-9-17 13:16
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Current situation3 Z F* |9 V2 { h+ B5 ?
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long5 O. G3 e/ f ~1 U3 y) L. [" H1 f
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may% B. J( X4 ~% l' C S
impose liquidation values.
' i% \6 C' B; X In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
5 X0 z" v) l* u, }- t9 U2 ^# W: H8 y5 AAugust, we said a credit shutdown was unlikely – we continue to hold that view.. w" @( Q8 E* E& e0 \' p" x
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
/ r! U* E5 A8 ]- f7 G# fscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.: z4 g: O$ \* C, I) G y1 Y+ H P
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A look at credit markets/ t3 G f N$ G R! ]8 V0 ]
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in9 W+ e+ g3 @- r" y( T5 p; }
September. Non-financial investment grade is the new safe haven.
# R2 Q5 j S4 g: e High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
1 m* q7 i# m/ `$ ~7 h qthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
/ v8 h1 b) |2 Z- Mbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have) C0 E1 H" h) V- v) N) z
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
2 [5 @6 g) @. X% g/ cCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
# E% s( `9 }% d! o. kpositive for the year-do-date, including high yield.
. }( }4 {# M8 N2 i/ o9 P5 ]4 M Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
) j4 m0 @5 g4 @6 d: u0 @finding financing.. o8 @* E) ~7 T2 w
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they1 W9 d* r; l, }
were subsequently repriced and placed. In the fall, there will be more deals.
; X; Z: W8 V5 p% S/ k" l3 s/ ` Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
% C9 I6 X" @7 Y8 `. H% b; Z" M+ U Q$ vis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were7 m. _8 i+ E# k
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
: i( Y8 c5 Q2 `" f* K0 U6 Mbankruptcy, they already have debt financing in place.
! _6 v/ H! H0 u7 v5 a European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
, ?2 [) p, a" @( k; ~) B# Ktoday.
6 i8 j- O' P3 r" C Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in# P2 L2 o- L7 y* y1 ?5 V" ]
emerging markets have no problem with funding. |
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