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发表于 2011-9-17 13:16
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Current situation3 M/ S1 J& }5 J/ y$ z+ V* }! F5 C5 f
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
- c+ R3 v. Q5 Q$ Gas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
' X" c. X3 t2 Z) A% b& Oimpose liquidation values.! v4 t; s1 O4 Z0 d; A
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
5 q, Z2 B: d# {" z6 YAugust, we said a credit shutdown was unlikely – we continue to hold that view.; ?0 i* H$ f& [/ i2 }) T4 ]
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
/ W8 t' ^' h% Z4 x# u7 mscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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7 v+ l9 j5 w, _4 {1 vA look at credit markets8 j- t' k9 ^1 ?# S% H
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
/ `( W s5 \0 s! U& kSeptember. Non-financial investment grade is the new safe haven.. s0 Z$ J7 ^' g' S
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
6 g6 R E3 u% i/ l+ ^1 uthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1: o4 l5 ^# v( `3 [+ x
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have: S# c/ d& z4 m; j- G0 n4 c
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
. `3 o4 ~! Z: W/ T" R. ?CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are! m c% L/ C, }4 b9 A# c
positive for the year-do-date, including high yield.$ e3 ]1 c1 f$ W3 e0 o
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
9 E9 G+ q9 o4 U/ @* V3 wfinding financing.0 V y" }: k4 r, w4 X! Q3 ^
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they+ N0 D6 q& A5 f( v6 q$ l& ]2 x/ O+ M
were subsequently repriced and placed. In the fall, there will be more deals.
( X- Z5 Y8 U' y5 d" D" i5 T( B Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
. |$ o4 R0 _2 J7 J/ w# ^is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
& t2 A( v" P2 u5 v8 ^4 N/ jgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for3 v* B/ f5 F; J0 H1 \0 v
bankruptcy, they already have debt financing in place.
& r: y' ^6 |) E6 n& p European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain c9 M7 J9 \+ }# O* S
today.
5 A7 ^2 k- A" s2 r; J! ]0 _ n Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in2 [" M! k$ \9 `3 T
emerging markets have no problem with funding. |
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