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发表于 2011-9-17 13:16
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Current situation
3 J4 N [' g* a The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long+ u6 J2 {$ g# v4 `0 H
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
" t J5 R3 I m8 y# p6 R( ]$ l8 E/ Jimpose liquidation values.( H4 g& L$ C" J7 S
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In6 B/ o; D7 k/ {% `
August, we said a credit shutdown was unlikely – we continue to hold that view.& G7 K/ V8 z5 Q6 O6 B9 Y5 c# E
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension' K1 a A, i* y9 S5 a: ^' t
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets
: A( s" C8 D T- p! s Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in& p& `4 _1 L/ o2 U
September. Non-financial investment grade is the new safe haven.- s) t$ n) V3 \- B: b* p" |7 l
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
1 ]: `( G: {1 T7 Gthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1+ s2 t7 R, x0 |5 K# w4 u! J* l
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
* o. N8 w5 C! ~5 V% }access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade5 ?, [5 i7 Q; P' B; @; ]
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are4 ?3 ?) E, @, s4 P; w
positive for the year-do-date, including high yield.: w, ]3 f+ U" b- p
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble, l! m }1 \% N% }0 u$ C# n0 X
finding financing.6 F! P3 w& |+ T* `
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
" i8 H! i+ w- _- ?. k; w; ~* lwere subsequently repriced and placed. In the fall, there will be more deals.
: S: x: H( g- ~# L3 C& l! Y Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
, F8 i: M% @1 [is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were/ Y. g) n( }9 t
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for' w* ]1 p- G7 H) G' |
bankruptcy, they already have debt financing in place., h8 ?6 h. |7 m5 T2 i9 [
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
. P- x+ V2 u: D& itoday.! E- X% t' d3 R$ `1 Z" e
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
% ~: ~( `- P4 b. j3 ^4 Aemerging markets have no problem with funding. |
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