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发表于 2011-9-17 13:16
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Current situation3 {. `8 C1 L% K. {
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long* C, V; _$ B/ x& }0 A
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
0 k' O6 u8 S% {# simpose liquidation values.* [+ S3 z9 q# o. A2 x
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
* z' ?* d" b# l, Z8 }August, we said a credit shutdown was unlikely – we continue to hold that view.
& N A9 e, K0 S- v# {2 w The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
. w/ n2 w/ V) R( t5 J' Oscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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& k' G$ R, H3 E8 q1 F. m5 LA look at credit markets# l7 K. l/ S4 t9 p4 K
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in. _6 p7 E* S* ^6 K/ p# [
September. Non-financial investment grade is the new safe haven.6 B% U! X9 M2 ~# x6 C1 w
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
6 P8 }3 F- r: z- xthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1* Z/ _. p B% d8 H: M/ E
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
# [+ H% S% V- saccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade: \: t3 u. Q/ l4 m
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are5 O' E G- F5 V9 [& m9 S
positive for the year-do-date, including high yield.
W. H! p& l$ F1 e% V$ B% g2 \ Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
& w$ S2 F6 G( Z( _' V6 j5 [finding financing.! b( S! y7 s: z1 }
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they. `6 ]9 m) @& A7 e* O
were subsequently repriced and placed. In the fall, there will be more deals.9 ?: d6 Q. S5 i5 k
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and$ _& G% Y4 m$ w- ~$ g0 w9 [
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
* w' A, h6 k' o6 p( @4 vgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
. e/ Y( @6 S \/ G; K- s& _6 vbankruptcy, they already have debt financing in place.
6 R7 C2 C. {/ @& X& W European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
h: @. J" ^" j2 i) D% q& htoday.$ \9 m. ^! x' J/ v/ k
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
: Z, W) | ]$ _! W- \8 V& d A, Bemerging markets have no problem with funding. |
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