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发表于 2011-9-17 13:16
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Current situation( K6 ^ k, x# P: E
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
( S t5 K( Z6 K+ U, Was funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may( y0 f% {- Q- Y8 d! C3 c: R' x
impose liquidation values.
8 j0 ?7 \, x0 e* n In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
* `( e' F, |0 E; o+ e5 O) ^August, we said a credit shutdown was unlikely – we continue to hold that view.; C5 Q b, {# {' k' e7 }) C
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
) @$ ~* ]5 a( @( k: }( b$ ]scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets./ k& B7 z6 z$ }1 Q( q& P
, ]3 t/ K9 q6 fA look at credit markets
0 O1 \2 X9 m) P0 k Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
2 n2 c# u& [9 CSeptember. Non-financial investment grade is the new safe haven.0 u2 U7 O$ @7 |2 E; `1 b
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%/ U3 g: t" ]8 g
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $15 d; N0 l* G( S* C1 g" m8 T
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
& B7 K+ Z3 B J' Y" T# \access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
) R+ k! q# ], H% \" h: D8 XCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
1 f' v# }2 |- p9 F T. `' O! \5 Cpositive for the year-do-date, including high yield.
" K, U, s, o9 h l Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
7 k8 L4 _2 n A8 d. b* d i5 \* j1 rfinding financing.# R1 T( u9 j: H- @
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
* {- h N1 @% q0 P1 Lwere subsequently repriced and placed. In the fall, there will be more deals.9 ~% f7 w- d. O; q
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and+ F, Z% u9 |2 d1 G
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
" a- S" A0 }4 mgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
0 z( B. L! N4 Zbankruptcy, they already have debt financing in place.+ t( B! j# |+ l
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain( w' I- \8 J- x. v
today.
1 f( u' p+ r, Y, ] Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in; u H+ ?; j, ~" ^; p
emerging markets have no problem with funding. |
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