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发表于 2011-9-17 13:16
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Current situation6 T$ f- [( ^. e( L1 p% a2 S
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
8 N" y$ s& _# A9 _+ F/ Vas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
+ Y# T: o6 ^. x1 rimpose liquidation values.
' z2 l- p$ o& b7 ?5 C- F In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
) o: `9 _5 f8 a1 D3 `August, we said a credit shutdown was unlikely – we continue to hold that view.
8 H3 ~/ x1 U# F2 u The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
9 ^1 ]* @( |! ^, iscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.- W! V3 d. E" [6 F
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A look at credit markets
* c/ q2 Z/ T# k: v, B Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
; Z; O9 O. N# B0 F; n$ JSeptember. Non-financial investment grade is the new safe haven., ^4 Y; J D9 T
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
( I9 z1 \/ [; l; z D- kthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $14 a, t- C' F% l- }+ G
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
7 h5 x" F& t; U+ k- L" z7 x/ eaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
/ o4 D# z7 H8 n& R9 [CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
: m# j: D/ d' p: ~positive for the year-do-date, including high yield.
! ?3 N/ C9 I& k% | Mortgages – There is no funding for new construction, but existing quality properties are having no trouble1 N: x; m' I# z# R6 c
finding financing.
R" m7 e2 ?1 ^ Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they# a6 q* g1 M; B1 q1 P
were subsequently repriced and placed. In the fall, there will be more deals.8 t) p4 ^9 w, i l! f; _
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and+ l) ^ ?+ ~: W C/ c
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were( D: }6 [( ]$ W
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for" v8 k4 {8 K8 X
bankruptcy, they already have debt financing in place.4 Y" `1 j+ Y( H, o1 ?
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain% } z4 v% p' c
today." K$ G N0 F* r% U
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
# f" N5 b* v* `2 V$ o$ ]8 Femerging markets have no problem with funding. |
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