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发表于 2011-9-17 13:16
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Current situation: E$ d# A/ l) g/ \
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long3 ?$ a* c+ Y$ @4 G4 Q9 @) X2 E: y
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may% Z3 t) Y( M: z) s3 z
impose liquidation values.
# q: |) w( ~) }7 |3 y* h In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In' R9 E; }- n( ?! c1 ~2 Z
August, we said a credit shutdown was unlikely – we continue to hold that view.2 m$ }! l3 o1 v- K% L
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
. L7 J4 e: X6 V; k* ?" kscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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1 H7 }0 e4 E c, V1 ~- SA look at credit markets" `' E4 T: c3 m& a( ?" @
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
3 H2 m7 F! ~; ?" A: QSeptember. Non-financial investment grade is the new safe haven.# e& O n# O! y5 d+ k# w
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%- y8 M1 p. W2 L9 p0 A
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $11 X7 Q- e8 a2 x; M: w
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have# B7 O1 v* g7 U4 T+ R
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade5 i& ~) j/ d. l; a' a9 I7 [
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
3 b% J$ k, u+ D8 K6 }positive for the year-do-date, including high yield.
+ C. r4 C. |3 H5 T7 H2 N4 j) R Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
8 J6 b* W/ {) ~9 d% b% U2 ]" nfinding financing.1 |: R' o" l1 t; _+ Y
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
6 M( G' v& F) R5 w/ @6 g4 D0 ~5 fwere subsequently repriced and placed. In the fall, there will be more deals.
0 `- b! d6 i. {! x; }8 [ Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
* {! W4 G# X% M7 F+ jis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
: _5 p6 y7 y( V9 g$ wgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
8 A3 d" Z" |1 f% X6 H' Mbankruptcy, they already have debt financing in place.' N$ Q1 w: ?' ? \) \9 ]' G
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain, N4 k+ [% c& u* J2 [& k" Z8 K
today.
% u" v* v& {, ^4 u Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
4 t+ W- Z o1 y5 u4 O }emerging markets have no problem with funding. |
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