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发表于 2011-9-17 13:16
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Current situation5 S, Q1 A8 F" f7 t2 q: n+ y- w
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long( C1 n* Z0 V" \4 O
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
2 I b+ a a5 d8 Himpose liquidation values.3 G6 m9 T# J* c' t, z! J; W4 a
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
m" v- a; o! r; b6 V$ H0 RAugust, we said a credit shutdown was unlikely – we continue to hold that view.8 ] M0 P2 }; y( e
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
+ l, E5 K; L3 b3 y8 r1 oscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.* t: K: F# Q) \# c7 v4 a ~9 O6 `; K
# D% g3 [7 N# F7 _. p+ P. w, _A look at credit markets
4 f4 I& a2 T9 X$ Y Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
/ `% K3 h" [3 i( H# B" q1 x" W& sSeptember. Non-financial investment grade is the new safe haven.4 u% Y7 z4 m9 G5 B
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%/ Y. H- n7 f w3 B" g$ L" |9 y
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1/ n: _0 X: H4 B
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
8 R. e1 i6 N" \+ r/ b" Haccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
: \9 K# }3 Y. z; L7 o& @' XCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are; w6 R& R+ |& ~# `5 O4 D
positive for the year-do-date, including high yield.
3 I6 x4 A: A8 i4 [0 R Mortgages – There is no funding for new construction, but existing quality properties are having no trouble1 B1 A4 Q& S1 j/ q
finding financing.
, s+ l0 M* O: Y( l1 x C7 } Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
; X) r/ s3 M8 v1 U; ^were subsequently repriced and placed. In the fall, there will be more deals.
7 C3 }* E$ x3 G* p Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
( i$ w, X' `$ L s. ]0 Fis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were6 @/ g* [0 E7 q% x
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for/ w/ [( n- d8 Z6 K; h6 s# n
bankruptcy, they already have debt financing in place.
, w& j3 [" \) G1 [# x European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain7 ?1 X3 ~) b6 f7 P$ U6 A$ ^6 L- j, H/ @
today.
2 `2 ~. g1 C& D2 P Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in1 C* ]. e( [; n
emerging markets have no problem with funding. |
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