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发表于 2011-9-17 13:16
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Current situation0 X8 i2 G w* [5 @ o. R5 \. k) K
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
2 q# X* L+ v) @# q Das funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
$ g0 L4 ~# E. x3 e' Q' m7 Zimpose liquidation values.- V, J2 w6 M6 S" J+ j7 \
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
& {4 V2 a5 ]8 Z! {" z1 R) GAugust, we said a credit shutdown was unlikely – we continue to hold that view.
/ `9 j7 V. z" H4 L3 t The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
% F1 y+ I8 l7 Wscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
1 c( i; Y5 D: S) K t% o; S$ ]
! u* Z7 E0 N/ I1 N6 [4 OA look at credit markets. Y) @6 u( k$ Q9 h- Q: h* T' p
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in/ \1 P1 A0 a; }! u# J
September. Non-financial investment grade is the new safe haven.4 y' l9 z& T* T! m" {7 [+ v! t
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%6 q; m% G) G7 [3 D
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
" B t- n3 u) I2 j' U6 P ~billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
; A# g" s7 X9 a- K1 |) f l& k: r9 b9 Iaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade6 m! i6 g e6 o" e* q4 J1 ^+ z' R, E
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
9 n# K4 d5 ~- Q: J6 H8 v0 W$ Ipositive for the year-do-date, including high yield.
& W; d8 T4 v, ^7 M; T8 X( Z Mortgages – There is no funding for new construction, but existing quality properties are having no trouble/ h J, u! O; c) l$ G
finding financing.' `3 |; a4 w! f. H1 x5 s B9 ]
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
! F0 N3 x5 p) X4 a: V& o. Nwere subsequently repriced and placed. In the fall, there will be more deals.
- i3 g5 `2 M7 e b# w Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
. |2 j. I: ~! c+ c5 his now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
& m3 F8 X. K8 w6 O6 tgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for Z* F6 N& u6 ^/ L7 N
bankruptcy, they already have debt financing in place.7 U4 {" L' D1 ^/ t$ f9 D' \
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
5 H+ G7 i A/ Itoday.! W: |. b0 g# C, p! K. W3 b1 I; \9 h- A
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
% S7 g' E( @1 H3 @emerging markets have no problem with funding. |
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