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发表于 2011-9-17 13:16
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Current situation, G1 [, M% U, g7 Q- K6 ^
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
, T' o1 N0 O4 Mas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may. x- q: ?! k- H7 C3 s2 T7 l
impose liquidation values.
) K$ f! P* C O# p1 D+ v, N) l In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
: f% E% I8 ?6 c/ |August, we said a credit shutdown was unlikely – we continue to hold that view.
) c& O* E( M/ u, ^9 p& v The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension& u9 k2 R* m& d( `6 \, o
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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G0 ^% e" K7 d zA look at credit markets
4 R8 [. l5 G" F! ^% G Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in' i* }4 i4 p' J+ o5 \8 d
September. Non-financial investment grade is the new safe haven.
) n6 ~' k; q) I8 r1 g High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
: j% d3 M% a) f) k1 Kthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1' i) D; v) r( y9 Z+ q
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
( `( M0 o9 j3 b! a; E- Xaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
' Q o# n' V/ F% x. ]6 U8 y& nCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are, D/ Q( ]7 e& g' G/ P/ F
positive for the year-do-date, including high yield.
) w% g/ l0 q% O4 N6 J Mortgages – There is no funding for new construction, but existing quality properties are having no trouble! w7 e! V# F4 J3 Z z
finding financing.& B/ p" f1 J) I9 Z) ?" x
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they* ]# n: z% S2 I
were subsequently repriced and placed. In the fall, there will be more deals.
0 W9 i5 d) ^ k Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and' y& _7 J' ~7 m2 Z
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were( ^ ?% r" o. w9 J* g& I8 U
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for5 g. V. `( v& I; F2 q! |( D+ K, S5 a
bankruptcy, they already have debt financing in place.
) ^* L* w+ E( a* i! S$ h7 w1 A European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
8 ?4 z7 A. J8 P1 @# mtoday.. E6 l8 n" [- _$ ?1 |
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
. G9 p0 A5 m. femerging markets have no problem with funding. |
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