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发表于 2011-9-17 13:16
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Current situation& Q' B$ \: |3 \9 k8 p8 X1 ?
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
; k S# {0 ~ Das funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may& K# ~' f* s+ t, ~( o
impose liquidation values.
* j* F. w9 O. Q$ v. L In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In" ?' t5 F* O3 e0 k
August, we said a credit shutdown was unlikely – we continue to hold that view.) p+ d$ ?) i- v* J! K( c
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
. C, _. x- K6 y. @scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets% s; j; x Z" m0 t/ l8 J& i
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in! F1 b# ?' g& L! V' h$ Q
September. Non-financial investment grade is the new safe haven.
+ o7 @# m6 {" A: w5 x5 r" j High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
) j7 F2 j& a# u2 c3 `0 @4 S% g- wthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1. ^. O, `1 s3 t8 Z ~; g5 [. K
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
" \7 f2 n( a" Zaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
' @" e+ q5 R; c9 KCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
$ H6 j3 a% s J* Apositive for the year-do-date, including high yield.# M9 f6 C6 q4 A% `2 o2 U4 }8 W
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble9 [6 [1 M5 d( p
finding financing.; Q# L+ o* L# L" i r
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
- I$ x7 Q- J# w" X0 S9 e3 Zwere subsequently repriced and placed. In the fall, there will be more deals.
1 ^ @; v6 u0 d7 l! ]7 A Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and# G) b/ S! v! v+ J# }( I
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
7 D- m. \$ N" x' Q- Zgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
$ [+ f7 U' _2 O8 @bankruptcy, they already have debt financing in place.
7 c K3 ?- D, a3 r2 E* z# Y European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain( ~8 j7 W7 Q4 |% D E5 D9 {7 y
today.2 }& C, O6 o' X) p$ Y
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in. s$ t1 B/ Y8 x6 l+ d) ?
emerging markets have no problem with funding. |
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