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发表于 2011-9-17 13:16
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Current situation4 u: B V5 E8 ^# B: K1 m# D
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long# `: Q' E0 [4 b8 ^. [$ t
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may8 u" I+ j" H- w3 y" E( P }3 d6 o
impose liquidation values.- ~+ t/ j$ `9 d$ m
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
& T: {4 S4 P# K* [) G% v2 KAugust, we said a credit shutdown was unlikely – we continue to hold that view.$ t& v+ L; } @1 L( L( Q) [! z
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
/ e4 T6 D/ c) A& x" b3 Zscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.$ P, D k. G6 W* X$ s; q) P+ R
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A look at credit markets0 ~! l' ?. `; T, l/ P2 o* u
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in8 p8 o9 Y, a, C3 n8 O
September. Non-financial investment grade is the new safe haven.( E; y( f; g" s+ I+ ^+ V, b
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%( u+ T' g4 W3 C" `
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1! I/ r# R$ Z5 U. z3 c/ }9 k
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have- U& k& W( [6 x" u. v R$ V* e
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade; _: M' f( M% p# |1 Q: W5 y4 U
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
' e, Q7 V1 D; `positive for the year-do-date, including high yield.
+ [# c) o, I% p+ g Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
, F1 U: J( g+ E4 `6 a, ]finding financing.
3 g+ L9 C+ ^6 S- E; ?& n Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
0 r& |! y R( d5 L* gwere subsequently repriced and placed. In the fall, there will be more deals.* P {) w- L: C3 o R4 d4 t; V
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
5 T! f+ ~- N! g3 e" r9 yis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were' O- p; y* U/ I9 D0 }8 c% F
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
" j& L5 n7 f5 E& G9 m" ^bankruptcy, they already have debt financing in place.
: a# l9 b( J3 \& L European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain/ z F1 e9 d% w4 L8 ]7 W
today.. m4 k, ?/ V* A1 y
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
# l ?: V9 {6 a' vemerging markets have no problem with funding. |
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