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发表于 2011-9-17 13:16
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Current situation) \# v* Z% m# P, y/ c( y
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
% ?* o! P, T0 Jas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may+ M5 h/ [& g- O |
impose liquidation values./ z. F4 |2 D" d4 ^
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
+ @) L: X/ w- i6 S% E, j. aAugust, we said a credit shutdown was unlikely – we continue to hold that view.5 I: T- s0 c) U! L1 g9 N" N" ~
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
5 O- [% P q0 f7 ]. |0 ^* V# v; ^scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets
; x" @4 f% @3 m d% z0 g6 j Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
8 X+ I; h: b2 ]& w% sSeptember. Non-financial investment grade is the new safe haven.
: A) I7 _$ j; O, l- K High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
; I( ^' q2 U3 x+ _1 Ythen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
^; J8 \7 \3 D ], B3 P0 b0 dbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
/ h2 c8 K: J9 ]access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
: e( W z: K7 ^: D" @6 GCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are# e, ~" z" O0 D& r" R
positive for the year-do-date, including high yield.
% {' t2 E8 I; O, A Mortgages – There is no funding for new construction, but existing quality properties are having no trouble5 _, v# k$ N- c* y9 S, C6 H
finding financing.
$ b `! A r. }3 c3 W Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
- x5 }, ^ p( E4 I3 ?* }were subsequently repriced and placed. In the fall, there will be more deals.5 r" b) O: ]+ y6 n8 V, D' X2 r
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
3 h Y* C, e6 n$ O: E9 vis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
& T! ?5 T9 |9 w$ Egoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
: H' u1 f4 r+ h; \bankruptcy, they already have debt financing in place.
2 r2 m9 d( s/ H0 q8 C$ j European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
' r" R3 y2 ^' s+ t6 Y" ?& [today.
9 N" Q) w, w% V3 f Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in ^ t! z1 P* o& h y
emerging markets have no problem with funding. |
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