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发表于 2011-9-17 13:16
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Current situation* T7 w2 A. L$ w
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
w# h3 a/ M {9 Y, O( {as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may/ H* \1 X1 v4 U4 }2 w% a/ r0 N
impose liquidation values.
+ b3 }; i7 x; p" z* Q" `3 A In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In, C+ |! o$ t8 Y7 m+ @' j8 @( H
August, we said a credit shutdown was unlikely – we continue to hold that view.3 |1 z, X9 X3 v0 S6 x6 D
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension, e- D/ ^/ ]8 M& w
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets., }$ J R( l, J9 G
, m0 q8 ?- z1 p9 P0 f: L# ^A look at credit markets* H' k1 }8 q. j, X, s$ ?4 W
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
; }6 X/ |7 f7 C1 D, nSeptember. Non-financial investment grade is the new safe haven.
: O8 \$ l8 i4 P0 ^0 l" i8 g! n High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%! v3 o$ o2 R5 P0 p, j
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $12 u" \7 d+ d8 k5 ]+ b
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
. \6 Y8 m, R9 A$ oaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade9 O9 _+ c* h5 v
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are6 j8 A* ~' M; \* N; e: S( ]" J b- G7 A
positive for the year-do-date, including high yield.
2 y; |1 C: h: v1 W- L. P Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
, }# }1 [6 S% [! R. j. K2 a! \finding financing.: @! p* y; z H: d. I
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
! F; y0 u3 {# n' i; vwere subsequently repriced and placed. In the fall, there will be more deals.
4 U: X, @& u' d8 V, {( c5 \+ Y Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
# p+ ?0 S3 H2 ~- C8 gis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
& u/ }. n* G9 j0 W5 c0 [going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
: |. ~% M8 N8 K6 x' `6 Y9 g! y) Jbankruptcy, they already have debt financing in place.3 O/ x0 w0 x: T5 _
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain; r+ _' ]) }0 Y' B; z& ^
today.
$ r$ k7 J; W$ H6 d1 A+ L f; y Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in+ r7 i5 ?: r( w
emerging markets have no problem with funding. |
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