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发表于 2011-9-17 13:16
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Current situation, c. N5 N( ^8 L W: Q5 j
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
! `+ f( Z( [0 has funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
$ \- m6 x, C- _impose liquidation values.2 q" ~3 b& x" a2 b# P8 s
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
5 ^- o" n7 B: N; b U) t, UAugust, we said a credit shutdown was unlikely – we continue to hold that view.. H& Z' z8 B( N# _
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension! o* w0 {! d+ U' b# ]4 d6 k5 H1 a
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets1 o0 w; c+ ]+ ~) l8 }
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in; z$ \0 i5 m- f8 J1 |: \
September. Non-financial investment grade is the new safe haven.
0 O9 Z9 f7 w5 ]" a+ x5 w High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
/ Y8 d6 y% v0 O& Athen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $18 e0 K$ d) Z. C+ O
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
) q" R) H. I3 m0 Taccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
( X6 Q9 B! N4 B% X: J/ FCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
3 n2 y. O1 j$ Y8 N* U$ [0 Upositive for the year-do-date, including high yield.
3 w8 A5 P# T+ }' C& A, S7 ? b- V Mortgages – There is no funding for new construction, but existing quality properties are having no trouble* o e+ g! W' i: t5 Y
finding financing.. K9 `, t/ Z! S5 w+ q5 C( E
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
' X, Z! Z$ W; `7 G {3 P9 M& kwere subsequently repriced and placed. In the fall, there will be more deals.6 r0 R1 _4 b$ r
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and# \" q& y* d" \- b" R# z
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
# B8 F8 e+ b1 q( sgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for% v" F h9 w8 A* Q) B' Q* @
bankruptcy, they already have debt financing in place.
) o8 i( B$ S! y, @. R$ K European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
6 E. P% j5 b* T6 ?/ `3 u. G! utoday. Y6 W) Z3 q: y0 K% D
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
% V( l' O* E3 H3 I2 w6 Kemerging markets have no problem with funding. |
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