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发表于 2011-9-17 13:16
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Current situation4 ?! v2 s; |9 Z; B# g
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
, v+ B0 F1 L, ]* f5 ~9 B$ ^$ Ias funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
9 k: e" X5 D) Y# O7 Mimpose liquidation values., e6 Q9 f! M; j, v3 x
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
8 i. H' k4 V" X' K! OAugust, we said a credit shutdown was unlikely – we continue to hold that view.2 y" [0 e* j* R7 P2 T/ H7 R3 v
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension9 h. v2 Y4 n" C
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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" o/ \8 K* q5 H/ p" B% }- t+ v7 n7 HA look at credit markets% `- |8 _ v) l. ], m
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
2 {, R( b/ ]2 o% `, ASeptember. Non-financial investment grade is the new safe haven.! W% E: W/ {0 Q* P$ Q2 \/ @$ m
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%) `' ?% S: @8 {
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1, X0 p7 Q3 H7 Y9 ~9 t/ s4 J& P
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
! T9 \2 {* i$ b' m6 Daccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade1 s* G7 |- P/ F8 z9 k ~
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are* X9 |/ c- |1 {
positive for the year-do-date, including high yield.; M9 c8 r$ c" J9 M
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble i" z% S7 V% M! u. y; [' S
finding financing.
; f m% b. `, G2 A& X9 M, V6 E: ] Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they+ P1 {) I" q0 z
were subsequently repriced and placed. In the fall, there will be more deals.$ e$ e. W2 }! ]; h! O
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
2 F8 q. \2 J! B! gis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
$ @- ]% B1 N% xgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
) F$ L/ w# b% w" `/ m) n9 p6 vbankruptcy, they already have debt financing in place.
/ }" N- y' Q- [$ h; D' m) X- H0 D European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
: H& m5 `9 q0 Xtoday.
+ \! W5 h9 T( G) S' F4 v Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in$ E3 Y) L. r8 k7 \+ \, H( q; k
emerging markets have no problem with funding. |
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