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发表于 2011-9-17 13:16
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Current situation+ y3 Z9 w& p" F
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
& Y1 J/ t. M- b4 Z+ @+ j( has funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may+ N& d, V [6 k2 _# g7 O, x/ S- d3 {
impose liquidation values.
5 a3 o- f& U& `7 r m3 {8 U. R2 F; l In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
; s+ s8 J d; [" q7 e; gAugust, we said a credit shutdown was unlikely – we continue to hold that view.. ?+ `; O) S, o1 V9 Y% _
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
; ]: ]/ X% V* g9 j# L: pscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
$ n+ `; t5 \4 |, L0 {+ y. M6 F- ?- Q( t2 t1 \4 e! @& ~
A look at credit markets
4 l1 I4 Q6 N: ? }7 \$ t& ^, b Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
% E0 F0 p9 N2 PSeptember. Non-financial investment grade is the new safe haven./ C) P7 T% g5 D K
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
+ M6 {3 t) T: L. n. h; b7 Zthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
: X' J2 N9 T/ V, n8 J/ ibillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have. i1 t, C: U9 K) M u! V" V& i
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
! k! ?: l1 z x; w: PCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are' o, N* U0 x/ ? S
positive for the year-do-date, including high yield.
: R. C1 { D) C; r! ` Mortgages – There is no funding for new construction, but existing quality properties are having no trouble, u0 ~. O2 B( m# c+ i: o1 u
finding financing., ]& q+ a8 [* M$ c2 q2 g4 ]9 k0 h
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they- Z& U" W. a$ e6 W
were subsequently repriced and placed. In the fall, there will be more deals.
, k' I9 u/ \# i Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and5 `. D7 H0 n' _( u v/ u
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were" |8 J9 F% l4 S8 j. a
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
& l7 o8 K. L- m- Q6 j0 f3 F& Pbankruptcy, they already have debt financing in place.
9 _1 A4 Z; _) o& f& t9 D5 b European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain- `8 {7 P9 g: g+ M2 y3 G
today.) E/ I4 V6 D& d1 ]* b
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in( f" k( K: g8 a' A2 {
emerging markets have no problem with funding. |
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