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发表于 2011-9-17 13:16
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Current situation6 V8 c1 B6 P5 _$ Y2 r
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
: Q0 R. W) N7 o, L6 w4 Y! I! fas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
7 X0 s2 `8 O% m9 s7 P& bimpose liquidation values., Z3 y' k) M3 d- e
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
& L" s# _6 ~* b# ?+ H& {$ P4 H& YAugust, we said a credit shutdown was unlikely – we continue to hold that view.
2 r4 g& v# l' I" m: u: u1 n The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
6 i. D3 f$ q$ _scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.3 D1 l7 P, F) y$ Y) I
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A look at credit markets# [. G8 j5 D( w6 D* ]: m
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
$ Q& I$ B# s! p! J, \" H2 I8 ~September. Non-financial investment grade is the new safe haven.' G: |% E' K% c/ [- w
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%- i& G/ O* Z5 b# s' R( s
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
1 C) i- ?8 l s+ \6 |$ obillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
8 E) s' H& `1 {access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade. h$ d; @ Y! M6 k, ^1 Q5 E
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
, H+ r8 x$ ?2 k( K( @! A" _$ Upositive for the year-do-date, including high yield.
0 x. W' j; J, j$ v4 P, _" x8 d+ s/ V Mortgages – There is no funding for new construction, but existing quality properties are having no trouble- j, G9 f2 J" X4 X
finding financing./ Z. A# w1 }' j& Q
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they! j# H4 L/ x/ \% X& T4 P
were subsequently repriced and placed. In the fall, there will be more deals./ Y( _, ?1 [& t* b/ m
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
- C1 N: ?* H' [* f' Vis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
# [$ }$ F8 `/ k( i) X0 \going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for* G0 ?) {( r. y5 L _
bankruptcy, they already have debt financing in place." M) x5 O$ w8 f0 x q( |
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain. n4 I# X- _7 F9 d! o5 D5 r ]4 Z+ |
today.
- {& p% O! C7 e5 f& F Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
6 r# i2 Y6 ^2 p8 U5 G0 demerging markets have no problem with funding. |
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