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发表于 2011-9-17 13:16
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Current situation0 @# _9 n3 U% }
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long m' w+ a$ u% r6 r
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may( z* K7 v& _' v
impose liquidation values.( R" a/ u* W) j9 _( l
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In5 R4 y& D. o4 e( q
August, we said a credit shutdown was unlikely – we continue to hold that view.
" T/ [) Y! w$ X The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
& L! L8 U9 J+ v. s: `/ N' Qscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets6 E' c7 t; a) Q4 I8 a* I' O
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
5 V/ Y u" r. H( dSeptember. Non-financial investment grade is the new safe haven.+ u' n; c5 i5 \# V
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%% t a* a7 b! ~2 R
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
% B0 m; ~& |. q: lbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
) ^$ j7 o3 t6 Z& p1 d( a, Naccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade, p# p6 _" P W& h; S( W4 v8 d7 @
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
( q5 |* Y8 T0 \! _* ?positive for the year-do-date, including high yield.
: k- `) g/ R d+ c. Z9 C Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
, f6 g5 |6 G2 \finding financing.6 F$ ~: s$ P/ j: K% T5 q! I
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they. m* o4 b& T; N6 p" z& o) i
were subsequently repriced and placed. In the fall, there will be more deals.5 e9 W" |, N s |3 z0 ^; h. X
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
" H5 g6 o; M- [) v+ \is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were$ d5 X2 G: E. e- G# F: v& Z& s
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
' Z( }1 Q I6 Z( E/ v' Obankruptcy, they already have debt financing in place.7 g, X* V' p1 j) [
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
5 s" \( h0 t. f- P4 X( W, xtoday.
5 k( X: ?9 i7 g/ r8 [* l# j Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
8 i6 j; E5 ~: l7 kemerging markets have no problem with funding. |
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