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发表于 2011-9-17 13:16
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Current situation( a4 y3 c) \ l7 o2 b+ y
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
9 y/ R; e8 X$ Las funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may& K: M! o& y$ [, c* e: `* t
impose liquidation values.
/ E" G4 [$ R1 U& K" G6 P+ L( R, f In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
, |; v E# Q+ Y! P7 a2 O9 C+ iAugust, we said a credit shutdown was unlikely – we continue to hold that view. R; D# B5 [$ Y5 a, K
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension Q( W5 ^% Y [/ Y7 Y" ^/ Q |
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets." b4 @9 U. u+ M1 B- T+ U
2 i/ b$ O5 o* Q( n1 NA look at credit markets
$ s0 u/ c0 q c" x) u" T k Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
( l0 N0 Q5 h: U( O( ?6 ASeptember. Non-financial investment grade is the new safe haven.* [# @1 c' _. `: k: ^
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
& C P- C% f1 v3 r5 f2 zthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $14 ]% T2 }! I w' j8 l
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have' e! j4 n% d8 T/ W6 ~0 G
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade P, ~' x3 C/ P2 A* E# A. C# A
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are' I: ~. F* h N+ }% u$ n5 T
positive for the year-do-date, including high yield.
0 V3 h/ V" h9 o# X# } Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
: g3 P. h! ~' `* Xfinding financing.7 R: h; L$ T+ _) v3 A" B; I, b
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
! N) ?) ?7 t _- l$ vwere subsequently repriced and placed. In the fall, there will be more deals.
0 j/ i+ g4 D( x/ g Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
3 c. J# A: ]8 j$ l" Ais now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were" l# y" D1 K+ ]: y6 {9 A/ r" l
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for+ F# m' u" f) _
bankruptcy, they already have debt financing in place.- ?# _) L4 |5 t- n" W" m- o) y
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
6 e2 {6 K# H' B7 H8 j W- A. J# }6 Etoday.
! e9 i; A9 `/ m0 I! ^3 I Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in9 s+ b5 g4 g6 c4 G. F5 r
emerging markets have no problem with funding. |
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