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发表于 2011-9-17 13:16
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Current situation* u0 E2 \0 `) b- W9 V3 M' D
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
& Y$ s! F0 ^$ E2 gas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may7 D5 O5 X6 F0 n' [2 N& W4 ~+ a
impose liquidation values.: B4 T% z2 k1 ?( t
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In3 H/ n/ i. V% d5 d
August, we said a credit shutdown was unlikely – we continue to hold that view.2 I( E# W/ d( ~- X8 ^, r
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension6 n5 w/ [6 `( M; C
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.9 ^& {' N0 q6 v: y6 }6 t
: Z$ d& l( H9 X0 K# N2 rA look at credit markets, J( d8 }# [$ C9 q
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in9 B e6 h& n% t) S; _5 [
September. Non-financial investment grade is the new safe haven.
( m2 `- [& H3 H. I High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
# a: c! {4 P/ ] q0 u5 sthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $14 e9 i. a. y) B
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have, q& j5 ~: f/ {1 o% o9 N
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
% f. p1 X" n' f2 S6 hCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
- \" ^$ R& H# R$ W. {& Rpositive for the year-do-date, including high yield.
3 x7 t2 C9 O1 }8 j* D2 z5 v Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
8 B+ X+ v9 E3 I5 H U9 Nfinding financing.
6 o6 b( J! ^9 S; h Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
7 F: O3 j7 `* u% Q5 K; b: Y, e; Vwere subsequently repriced and placed. In the fall, there will be more deals." s6 y/ S! l; g
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
/ g/ E! Q; y: a! Sis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were* K+ I0 E# {8 R5 T( l/ w- O
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
1 r; D3 a" l& C5 dbankruptcy, they already have debt financing in place.) L6 B- v* k: \0 Q/ `9 L
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain# u) ?0 `) p! L# T
today.
7 R. G5 d6 g7 x! m T, b2 x Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
4 ?/ Z: a% |, k% d, o( _emerging markets have no problem with funding. |
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