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发表于 2011-9-17 13:16
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Current situation4 O" t2 U; n! M d& v' J$ v0 a6 g
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long8 n0 h& d1 J0 r) k; K4 P/ l3 o
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
4 `& B T+ F: B: Ximpose liquidation values.! F5 G3 S- O5 k: Q% B/ p0 V; W$ j
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
/ z; Q" S8 j. s9 h7 CAugust, we said a credit shutdown was unlikely – we continue to hold that view.3 G" M7 l. I& M8 C u8 J: z
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension4 O: t, W8 a5 H" K V% p' X
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.- m' [( D" l4 H) y6 `
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A look at credit markets
/ @; i; g; {2 H+ x; ?2 U- r Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
7 z: n a! m" I+ B+ sSeptember. Non-financial investment grade is the new safe haven./ t! b" y( Y1 K3 z: C& q
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
- u+ S- o- k+ M' bthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
: s0 `5 U) |9 x% p: Z4 d4 j* gbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have; G, @7 P5 m" d- L$ f) _ P5 ?
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade0 Y8 ?9 g9 ]6 X! y/ Z
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are5 z: z; `5 X9 I8 w L) J- d% U
positive for the year-do-date, including high yield.7 I S" Z. l5 K8 J
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
7 p6 K& H3 J8 M' S, Cfinding financing.9 z3 b+ R. x1 ]" J3 t4 P3 V
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
$ z @: o+ b0 n/ hwere subsequently repriced and placed. In the fall, there will be more deals., `: C( I* E8 [& g; P, t# o) y Q
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
+ ^' N- {) Z8 B# T1 y4 @; kis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were5 o/ v" g6 v# _0 e, @
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for$ t9 U; K. }' `$ p
bankruptcy, they already have debt financing in place.. m- [; {+ h M8 a5 o) n* Y
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
. H. {4 w+ C6 K5 b1 k" }6 ^today.
2 c7 o* r& ~) N Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
* x# [: |' A4 z8 ~emerging markets have no problem with funding. |
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