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发表于 2011-9-17 13:16
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Current situation
6 l. V' U. y+ c: [ The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
/ f3 J% k1 ~8 c4 g6 [# las funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
: M: [( ~/ {% B/ g) Pimpose liquidation values./ q, V; P9 Q) U2 Z7 c4 C, q* s# D
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In( s" B8 ?( A' z, P: J8 a* e
August, we said a credit shutdown was unlikely – we continue to hold that view.
& |( {6 N# T5 L" r The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension5 ?3 f3 v7 y& w3 |2 v" \
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets- d* p$ d4 ^: B n# |& x; D. m, y1 c
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in) X7 {( `3 }& ~6 x4 T1 @5 }+ N
September. Non-financial investment grade is the new safe haven.8 Q( f0 X( c* @: z6 @. _
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%* _5 p( M5 Q# p* w' ?; |' N- w
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
4 `; h* @! M k0 j* Fbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
; t% G' {+ E/ F/ F4 `2 Baccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
* {7 O4 l; b/ F- w+ k0 a. W8 M2 w3 [CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are5 ~& ^- t' y4 ^; l, x' y$ r! N
positive for the year-do-date, including high yield., P" o0 S% ~, x: o6 ?) }
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble( } Z- T- H( v" q0 e4 {. E
finding financing.
: u7 ^3 f# U2 P2 } Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
% t+ b, e& k; x) twere subsequently repriced and placed. In the fall, there will be more deals.8 ~6 x0 f$ Z6 a$ s
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and0 l7 @- \& O( L$ r1 ~! O, ~
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were+ {) ?6 ] W* }- B& T9 J, ]
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for/ C# G; y$ x) K: i
bankruptcy, they already have debt financing in place.1 D, p @4 [* h" }
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
7 d5 c5 M3 Q# G: K6 X( T2 Etoday.7 Y- l. r" |( p% w* y9 [
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
6 m1 }, o8 C+ |1 |3 l; Gemerging markets have no problem with funding. |
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