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发表于 2011-9-17 13:16
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Current situation$ ?+ r0 |7 _4 u4 D: H2 m7 p& ]
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long0 r. b5 N* j0 }6 _) d) q
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
. g6 h+ v6 |1 K: r I, Ximpose liquidation values.
% Y! O/ @4 m* O& f* p9 q In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
5 z" o9 B& D2 v M f2 w0 ~0 QAugust, we said a credit shutdown was unlikely – we continue to hold that view.
# }% l! v. j G! e' ^, T6 D% \ The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
1 S+ ~# u. K/ a* k7 @6 b5 j' Nscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets
" A, ^$ I# H+ s5 P* _2 G% T9 [, U4 o Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in/ Y: [3 x1 N/ X' Z, u0 s3 ?
September. Non-financial investment grade is the new safe haven./ O' x6 v2 ~! _8 Y4 s- r
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%; D$ w {' @& z5 [1 @& o
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1- C8 I F! U# w! j
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have( V8 z, _. N4 ?9 m* H
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
" B3 U2 O% y/ h- @5 L( T) BCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are+ b3 W- O% I2 e# ]. d s9 ?/ C3 V7 D. J
positive for the year-do-date, including high yield.. s% k+ s( @: g$ ?+ Q
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble! `1 A4 u- ]0 E4 |1 y% K
finding financing.+ G- s* `& f8 }' a3 [/ o# X
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they& A7 d, C! [ b$ n) B5 E) z
were subsequently repriced and placed. In the fall, there will be more deals.: N4 A' T, o: [4 V& T% j' R3 U+ v
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and+ X2 I) E N) K* M; P
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were' ^7 d9 Z" B# u+ [# U+ p
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
' R, j- x8 e+ s. q1 \4 zbankruptcy, they already have debt financing in place.* E) w+ ^* h" U6 T, X
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
0 k1 _0 p, ]( _today.
6 h8 s f9 H" _" C Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in. u5 Q8 \2 h8 ?- m
emerging markets have no problem with funding. |
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