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发表于 2011-9-17 13:16
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Current situation8 p' F4 O9 V! X' c9 c
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long% n! }# j, C+ U. A7 v8 Y
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may( [% j( b1 P' L
impose liquidation values.
4 R+ G2 s. k, L8 v& b% f; U9 D5 S In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In# b& l5 R) [7 K( C7 b# r! ?* V7 T( z
August, we said a credit shutdown was unlikely – we continue to hold that view.5 b6 b5 b' F0 B/ H1 ]
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
0 W. D9 _8 c0 @ L% escrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.2 z+ p, n7 _2 [
- ?( P$ k% G S6 ~/ _+ \- eA look at credit markets
( Z. N2 Y p' O/ i3 ^, ^7 K3 \ Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
- O% c0 w7 K% h- j% y h4 iSeptember. Non-financial investment grade is the new safe haven.
. t$ K1 g$ T/ K- w$ S High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
" m$ z, T- M1 Gthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $10 T& G$ p# \) d+ q3 \, {
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have0 x3 a# Q, ~1 c$ q4 I2 |
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
$ p4 q) G% ^! H5 x8 ]CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are9 U* V' m2 E% [' m3 w
positive for the year-do-date, including high yield." q$ [& M1 a* M* T+ @
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble8 N/ [; J+ c, k. W- Z* V* [+ C, M, w
finding financing.! M0 d0 l$ e) I. u9 @+ x1 D
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they9 r+ L- R( _, @, T
were subsequently repriced and placed. In the fall, there will be more deals.
( K4 p3 V. h3 o( f& w5 e Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and" ^$ J) m' q5 `- b) W' Z( @
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were+ y9 O& \9 P9 H+ d9 }
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
7 a# N; N3 w+ F- a; _5 nbankruptcy, they already have debt financing in place.
- A8 v5 C! z# E/ G European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain8 L% W/ r" C9 J8 H' I& L. z! C6 p
today., j& @; s$ ^# ~
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
3 H9 P$ M7 e: Uemerging markets have no problem with funding. |
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