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发表于 2011-9-17 13:16
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Current situation4 S3 f1 O3 D6 S( k* F! v+ u
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long* O. U. S0 x& _0 v- f" M
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
* y7 O- \( D: ?+ |8 S timpose liquidation values.
. P5 D5 i- y" e0 a In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In) _* y% \' b$ b, T; X( I
August, we said a credit shutdown was unlikely – we continue to hold that view.5 D6 m$ y Z0 g4 K+ U/ ]# s3 C
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension7 B' j% {6 X$ |+ P& Q
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.' h |& o) m, A0 H
. s) L; V+ ?0 o! R/ z. u iA look at credit markets) q8 Y+ y* b3 h& q& O& b+ T% |
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in2 h4 L) j) l* }+ E+ r4 E [ K: g; P
September. Non-financial investment grade is the new safe haven.
% Q. F8 g1 i7 z/ [; p( o' _ High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%0 a- _; Y0 B( C q: s% q7 o
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1* u) m; a9 M D+ S w f; D, I
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have, e/ T! a0 [' l# d. z- ~( G8 J
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade$ X- M% ^/ y% L+ @# B0 J6 P+ o- `
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
) I5 k" G) e( Ypositive for the year-do-date, including high yield.
; n, t7 P3 u, n& o- I* o Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
; ?9 c: v, W8 C$ z: lfinding financing.% g( u1 q6 J8 F/ K8 T$ e2 N2 k
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
5 b6 f4 S& ^& h W3 ` rwere subsequently repriced and placed. In the fall, there will be more deals.) M7 \6 Y+ C. x! H: g" |; b
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
. G( l( G R/ R0 Lis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
, q0 {' | y' j5 [going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for5 C2 |& r; Q! x; E0 K4 H' [4 ]' C
bankruptcy, they already have debt financing in place., M# k2 v# c5 c' F% R) r
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain' a0 K' u5 H7 j" _. |) n+ [
today.5 }2 G9 ^3 q/ r1 G/ f2 }$ u
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
" |. O% W/ o6 y" x" ?emerging markets have no problem with funding. |
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