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发表于 2011-9-17 13:16
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Current situation; w; D5 {! f _. G
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
+ b7 \/ ^0 o3 i1 v9 Das funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may2 B9 k+ S. b4 {1 B* x
impose liquidation values.
4 E ^; d/ m0 k* \" z! H In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In @, j/ e4 B$ t6 @5 Y
August, we said a credit shutdown was unlikely – we continue to hold that view.
3 i1 x. s% Z* v& C* h/ [ The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension- G, W' m1 z/ X2 q
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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3 @9 K0 }" |, O; i) L! cA look at credit markets/ z- q* [3 G: Z5 C$ w3 ]* ]
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
5 D' E- e7 f! n7 J RSeptember. Non-financial investment grade is the new safe haven. I, |' F. L( _- O3 Z: k% R8 T
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
" Z% w* K6 {) R+ O+ m( m8 Ethen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
$ q4 \4 h, n) A9 U# P! t7 Ebillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
4 C! |5 ^* l( V7 Uaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
7 Q9 ^2 J+ W8 L# n$ y; lCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
- K! W9 _) t+ g: x6 p+ H1 cpositive for the year-do-date, including high yield.$ i3 r$ ?) f& V0 |
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
0 E( K0 L8 u; I. A( R" s! [finding financing.
6 V) H. d- n& h% i9 e; w Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
: B" @ L# {: Pwere subsequently repriced and placed. In the fall, there will be more deals.
- Y4 Q" T* J. [& J Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and& [" Q. W4 X; v' s/ A
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were# d/ s' c/ Y% n, H, V
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for! R6 D- w& e+ J* Y# A8 A5 t
bankruptcy, they already have debt financing in place.
2 A8 \# t+ r5 K6 i. g. K7 d European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
6 H6 @! Y# z+ j; ^: ~today.% I# u. {' m) ^7 F, J8 ~. U
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in9 }5 H$ H/ F. I
emerging markets have no problem with funding. |
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