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发表于 2011-9-17 13:16
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Current situation/ i8 a9 U7 ?' k
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long) |1 L8 M& X8 v1 I5 B! I( i6 q: B" J
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
$ G8 N1 ~6 I) e# i" Q! qimpose liquidation values.& l& c' c9 z i2 D1 g, T8 Y8 f
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In2 A( G( I/ t3 ^* t/ j& A8 S
August, we said a credit shutdown was unlikely – we continue to hold that view.. c& E& t+ c7 F$ M% \
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
2 { U+ X" V4 L( escrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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, X& s Q4 q4 J! I) ^A look at credit markets
c% l" J9 x' O8 N0 W/ m' e! Q, _ Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
4 `$ l o% q7 H+ o( gSeptember. Non-financial investment grade is the new safe haven.7 O9 w! T( Z6 S5 O
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%5 O) M2 E. a8 D0 g9 N
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
$ w% h' o/ q& ^4 S: zbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
, B3 ~# g2 Q x7 yaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade, S+ ^% b% k" ~( ~
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are" x% a4 }9 e0 m% }$ B
positive for the year-do-date, including high yield.+ Y% {6 h# b: c7 W$ T, c" Z
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble6 w# r% m3 [2 e; @& \% i* @
finding financing.
, D& h- s d2 V1 _: k) V Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
7 Z6 m) N: M9 |9 m6 kwere subsequently repriced and placed. In the fall, there will be more deals.$ b/ B) f% g$ ?. ~2 F; I; h
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
; m# q8 ?) u* M/ Q8 B( Sis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were7 r& a8 O; t0 T9 }: ?
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for$ o1 E5 j5 T3 j, h- i
bankruptcy, they already have debt financing in place." a! E2 J8 N5 W
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain- ` s# p: _: ~! `3 s! P$ _% ]
today.$ o0 m. {! W) W6 n4 F4 V
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
9 S' E# i: V% O4 [2 V4 [emerging markets have no problem with funding. |
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