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发表于 2011-9-17 13:16
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Current situation
: p7 `; l) s6 v$ t. G2 W The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
3 z$ R- [# {! h$ y1 e9 |+ \( h3 ~as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
9 w6 m% h% v/ ]impose liquidation values.( Q- ~' F) g( S- X/ z; e2 O4 C
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
; p: C3 ~ K6 P* {% ]1 r& D+ ], n1 \August, we said a credit shutdown was unlikely – we continue to hold that view.2 S8 _) n# L2 r9 c
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
3 V% z4 C0 I: Q$ X: hscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.: m2 u8 R$ x- N% v
/ k5 J! {6 p% T/ D; f. xA look at credit markets; Y* j/ x r: n4 j7 ~. m
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
" D7 F# o A* u: n$ ~' P+ pSeptember. Non-financial investment grade is the new safe haven.& Y1 G' J3 m* t B# ^/ g
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
1 i9 a) t7 @( Jthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
( r6 m5 l$ c& d; }3 ?/ i0 Qbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have. e: J7 \3 y5 _3 K( f
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
3 V1 }# Q4 l& `! S; \" nCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
4 P% f9 n9 Y Q/ X c; F" J2 ]positive for the year-do-date, including high yield.
; `8 M( T* ^$ a5 k2 \4 A$ X Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
! z' R- F {' p! j* _) Kfinding financing.( F7 V7 }. I+ k X+ o& V: U
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
# }. T1 i' Y3 f8 Z7 B" vwere subsequently repriced and placed. In the fall, there will be more deals.
% i' \% e( H: }, R T Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
% S. F E4 X& b0 ~- T; q& Ris now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
0 q2 a" w: O; _going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
/ a t3 j4 W/ o' C* Obankruptcy, they already have debt financing in place.
) g: u5 F( n( U( }3 A' R European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
% f7 d; |- y \0 r4 Z8 f1 B! qtoday.; d# s, i; s& v) m( F) A
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
+ O, y" o% Z4 u# W& yemerging markets have no problem with funding. |
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