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发表于 2011-9-17 13:16
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Current situation
! t2 q5 G3 H; C$ C$ ]6 w8 i* J The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
2 A, F5 j$ M7 T/ las funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
8 D: N1 c. T6 i8 \2 D5 nimpose liquidation values.' @$ W7 I( K; i2 W2 i3 R
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In% ~7 _, @+ x5 {. _6 [" b3 w
August, we said a credit shutdown was unlikely – we continue to hold that view.
- m6 P, a. \. `3 Q# ^/ K( f6 X The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
6 Y1 M# h/ `$ D7 D2 C) wscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.. j y- y8 `& C0 w. s
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A look at credit markets
- @, p* R+ _9 s' n! b% J Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
1 U+ H9 q( X8 g* p/ W- c! BSeptember. Non-financial investment grade is the new safe haven.; G8 F& S* I5 p/ c9 a; S* u
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
0 L7 z) X4 M o$ N- r( E# B6 vthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
7 X" K( U/ V0 B. @8 t* Wbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
9 Z: O; A( H5 U7 W) @, {" M4 |2 Yaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
0 c1 x! p* h* h+ R& ?CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are7 j+ z* E, _$ O
positive for the year-do-date, including high yield.( K% V4 q! {. e/ i3 A7 W
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
2 ~: ~3 w* c; S: w9 tfinding financing.' J) U9 ^! `8 l) V5 D: s
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
* M( [: M; ~% ^% _& ywere subsequently repriced and placed. In the fall, there will be more deals.
" f' h- U* g+ {: \6 Y; V1 x2 r Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
/ y& q5 K% R/ S( |is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
+ N) y# ^* n+ S# Z2 ~: rgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
$ }! F7 p- |! bbankruptcy, they already have debt financing in place.0 U# u7 X" S# {8 H }! L2 v
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain9 o( p* O# v% e' T* d
today.; b4 R4 [# a6 ]/ ~+ \! K
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
$ n7 d! I7 v0 g4 \7 \2 G _, Aemerging markets have no problem with funding. |
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