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发表于 2011-9-17 13:16
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Current situation+ T3 [1 ]/ }( F9 K* O% N- u
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long. Y9 ^7 C1 `/ ~! z# D7 v2 l* F
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
9 H9 V/ I7 s' g( o2 X; n1 ~impose liquidation values.8 f8 \; k* \9 ]) I
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
# }, _+ m" l5 K. E$ T ZAugust, we said a credit shutdown was unlikely – we continue to hold that view., `& R9 d: q+ ?% `0 H% z
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
1 R* ~" y: a0 |scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.# X4 b* J. B8 z5 T! R
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A look at credit markets8 N9 [5 Y" A; C2 A0 I, g. e+ K5 r$ e
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
, K$ y! u1 N# u# SSeptember. Non-financial investment grade is the new safe haven.
9 d. v! N: Y: k$ o High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
' W! ^9 j( y, bthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
, v; {/ a+ k+ Y) q9 `: e9 X/ Zbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
+ L$ }' ?# m* R* i: L. waccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
( r9 k: r& E/ V$ LCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
# j# g2 W. R) n- P0 t! @$ |positive for the year-do-date, including high yield.
2 T0 S1 v/ b5 u# p1 U# G$ O Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
7 H) x# } H% `; l; Hfinding financing.$ F6 q! |3 `, i4 m) N7 d
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they) ]1 o: f+ C4 Z/ k
were subsequently repriced and placed. In the fall, there will be more deals.
8 ]9 f2 N0 H8 T( ]) U$ ^ Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
. p5 C+ K" r* p! w7 Y" Ris now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
4 P, Z( s" g" R, \3 a; cgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for! Q }9 S: y, B' q
bankruptcy, they already have debt financing in place.( |9 C0 o, o p8 _& C$ j9 ?
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain. Z1 D. a$ y8 a) n
today.
* p: Q/ ?! O! ~ H2 M) J A Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
" ]* y# h" D5 s" f0 s2 `emerging markets have no problem with funding. |
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