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发表于 2011-9-17 13:16
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Current situation5 O0 U6 z5 l6 s( i5 b$ i" d$ D: r
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
$ N/ N# ~# W+ o3 A# has funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may2 M* q/ X: P; D" k# Q/ h
impose liquidation values.: O4 q0 f+ |3 W, R: l( n
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
6 B# p! K6 \ w" u! ~5 N' yAugust, we said a credit shutdown was unlikely – we continue to hold that view.
* t d+ h8 } i7 g. O The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension. I& p- r+ d! M. S$ D
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets" Y, N! |% U5 K( R
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
& q* D- {- w# P; h, pSeptember. Non-financial investment grade is the new safe haven.
) B- j, Z4 j3 }' |! V; s& u# Q2 i2 ~ High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
9 ~# r' D. F+ |* C# zthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1" f, J6 w" O% ^: H
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have2 v# }' V% o4 F# l4 Q u) q
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade3 b( y% \' |5 X i. \0 _
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
/ g# A% k O9 ~3 S5 r" wpositive for the year-do-date, including high yield.
; y- r$ O2 r% ~2 s$ A" n6 X8 T2 h Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
# c! l: \/ R- }finding financing.
% K) H3 b- b+ a, V" E' z Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
9 F4 z! U7 u- r* xwere subsequently repriced and placed. In the fall, there will be more deals.
+ g: y* F. k. W! j {8 B e Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
& ~8 g& X W' ]( d" T/ a8 Jis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were* a, B0 w+ ~( ^! x( @
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
! x" T9 y3 y# {bankruptcy, they already have debt financing in place.1 {: Q2 `# I H. p$ i C
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
\9 b4 L4 k, |6 | f0 ]$ P5 ]today.
+ f& |. \/ Q7 U. Z( e3 }) @ Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
% R/ r3 h% v, E: {, B5 `, G+ D3 @' b! Remerging markets have no problem with funding. |
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