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发表于 2011-9-17 13:16
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Current situation
# b5 L& A& k3 Y( k, W The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
' V; Y- d# W4 Y0 V5 B: x9 Yas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may) L6 ^8 V) n0 P% Z6 q1 s+ {# L
impose liquidation values.
5 \) y4 X2 ] |9 i7 ]/ V1 f In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
( J* t* P8 {* Y" t3 z" D# o8 p5 L- IAugust, we said a credit shutdown was unlikely – we continue to hold that view.
( W4 |( e0 L. T6 j The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
% x0 [( w& o8 [scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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$ L% f) W" e% E/ @. J/ vA look at credit markets
, q- l& K# M# }# P- O) F; j3 P Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
9 ?8 B+ d, A$ b. Y7 k5 U% X) JSeptember. Non-financial investment grade is the new safe haven.
; K7 w6 e! ?5 ]6 J0 H/ p' z High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
) z* v% |/ t0 Tthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1, }2 Y% Z5 D) Q! ], j" d9 v
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have$ i& r: K. F) w3 q. ]
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade2 j' j% }) _& a: W9 h
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
$ o5 ?9 B! P+ k7 T. ^( Apositive for the year-do-date, including high yield.7 @9 x W% B1 K
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble+ N: g2 u+ _: b
finding financing.
: O& q' Z& |$ l Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
0 U+ l' P* ~& N. T5 `were subsequently repriced and placed. In the fall, there will be more deals.* m/ q* e$ r: q9 a* N
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and9 A+ Z: G2 B$ c$ U. C
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
0 ]/ S: J; M- I- \3 L5 v7 Y1 z9 {; ^$ pgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
- S$ O- |7 i; P) B2 J0 `8 y" _bankruptcy, they already have debt financing in place.+ y9 R* u: s. ~8 b
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain4 y4 D, |# C) M0 x
today.
1 |# [- H6 P$ e Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in2 j6 d ], T& G( Q; ~; s
emerging markets have no problem with funding. |
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