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发表于 2011-9-17 13:16
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Current situation, i; e1 R! J; f
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
9 q& \2 ^8 a% ^7 ]' T$ N. las funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may- V, o1 m, {0 i9 H1 N' N; \
impose liquidation values.
% d8 {6 t: T: n In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
9 r5 a/ w% k# d) {August, we said a credit shutdown was unlikely – we continue to hold that view.9 z8 u l: L% u8 ]1 h0 q0 S
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
; b; m( `* t! o" mscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
5 T2 J' C2 X+ i6 w$ L+ f1 u: M- {
! t+ P9 Y( \# q; q ~A look at credit markets
+ l% L |% h5 U" v+ s Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in4 ^: h$ y3 ^* P; z
September. Non-financial investment grade is the new safe haven.% b) z5 P: e5 N6 V
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%7 y: x* Z4 o- r) w
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
9 W" r9 w0 t# { C! j& D* ubillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
h$ a/ y% T# i0 e- F0 a$ Waccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
2 A1 e! q H- ?% L3 J; XCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
$ p+ b7 l' y! G0 s" ?positive for the year-do-date, including high yield.- ~0 E1 v9 X7 V* M! W
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble9 i$ ?6 c. [/ K" n2 S2 ]
finding financing.
- ]5 ]+ c$ [5 B: | Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
' J' R) l8 J9 F _! [ fwere subsequently repriced and placed. In the fall, there will be more deals.
! N6 ?/ H2 d" s( w' A Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and/ u2 B7 S9 _+ f' r/ m" D
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
7 m. z! T) }- v( v2 ugoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
2 J) c, C4 |- J Ibankruptcy, they already have debt financing in place.
6 Q# t- S/ ]. w x9 l- E2 f' E European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
0 w$ X7 \7 b: ptoday. \- Z0 J5 o# u# O: b: I
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in7 i! M6 `1 }' g# c7 i* A
emerging markets have no problem with funding. |
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