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发表于 2011-9-17 13:16
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Current situation
5 N( Z+ k. ?5 ^) | The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
+ l. h- h7 G3 f2 i% J0 Qas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may- a! ]; d8 |+ x8 ^) x
impose liquidation values.
9 @4 v+ f) p! k; o5 t7 { In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In, L( n6 F \/ t) E* G
August, we said a credit shutdown was unlikely – we continue to hold that view.
* A; x( G7 o, H4 t( O The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension! r+ w* Q& I c7 Z- b7 B
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.6 ~2 L& w8 p' W2 d5 J+ a2 S
' h$ i$ r/ q/ {7 n+ gA look at credit markets- ` X, V8 x4 V' f( {1 W& a
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in( A! `) t0 t2 {, v) c
September. Non-financial investment grade is the new safe haven.& R1 ?7 I. m2 R* e
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
3 m; a' q9 k8 \- C7 u9 xthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
3 n. W. h0 ~! G' dbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have0 G) n" Z: D P5 Z$ t: G' I
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade5 y$ V# z$ u, {$ g+ x/ z
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
9 _* q) T4 R* p' Spositive for the year-do-date, including high yield.
0 R8 |! T( m. v" c! @4 q( ^ Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
; `; [4 {: `! ?7 i4 g yfinding financing.
9 y1 g! q* n. I8 p Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they* @: |. ^& l+ q7 e5 ~
were subsequently repriced and placed. In the fall, there will be more deals.
% T4 q1 B4 H8 _& | x Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and4 _8 F# g. C( Z/ S
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were& o, S3 f; T! A$ l
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
+ ]8 f: x6 Z" l/ Z6 ~bankruptcy, they already have debt financing in place./ _4 B h) z7 J, @7 A$ L) n. d
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain, s4 O1 ?: }$ Z
today.6 E. s2 \6 h* ^2 M0 {
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in) i/ u! M0 ?# s% i& D; g* z
emerging markets have no problem with funding. |
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