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发表于 2011-9-17 13:16
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Current situation4 U6 b) } {* ?7 S6 n# @
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
( W3 t: q. e: g/ n# }% Zas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
% s H4 h0 i# x) `impose liquidation values.
# g% [! s. ]- O3 g" J0 V3 k7 f( y In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In# s, M e" W# Z, @# E% \9 e
August, we said a credit shutdown was unlikely – we continue to hold that view.
5 z: d. Y" X4 L( s }! [ The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension, E, s, ]' }, ~6 ?& e; e, \; L
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.; n8 F' k u8 p& H, K
/ t' B# `2 p8 u) i: M& W( _A look at credit markets/ \3 I( r8 U4 N+ ~
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in9 M7 ?7 ]. E: H* u5 F: z) d7 a9 k
September. Non-financial investment grade is the new safe haven.
0 U* E9 T8 o+ T High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7% K8 ~, w4 X! a- c: `% O0 E
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1! g6 Y8 r" I: C4 R J: u
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
* s# {' _& l" x/ `5 eaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade- `5 d$ a. z2 I) M0 i/ P
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
2 P! [$ C _6 U# f" F& w& L- Dpositive for the year-do-date, including high yield.
+ P2 c* X0 Y4 a Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
. I& l$ i: H- Q! jfinding financing.3 A- a2 l) A7 {+ ]: n; z) |
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they( b, h. F" l! d2 V- @
were subsequently repriced and placed. In the fall, there will be more deals.1 C$ O" }. q5 @0 S p/ ^1 Q8 e% i
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and6 m& Q* j# w2 X; p
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were2 ^5 L5 }0 G1 J& |0 R: r1 y7 l
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for" i) s6 Y) _. }6 u) }! ~5 C; |
bankruptcy, they already have debt financing in place.
( o7 T& i, m. u7 \ European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain1 n# S, ^# d& s% x- l
today.$ G2 x6 q4 h2 `1 {0 H5 @; v% _
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in/ | \9 [' y2 B* ]* `
emerging markets have no problem with funding. |
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