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发表于 2011-9-17 13:16
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Current situation" h: s( y: a+ g( M2 D1 |' K
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long' s; t" C) L; q0 d7 T
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
, p+ U: Y# E; f$ w* N4 D& Iimpose liquidation values.& X. @9 C) Y K& ? X6 I g
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
) o' n* V7 ]% o& |3 O+ D" VAugust, we said a credit shutdown was unlikely – we continue to hold that view.& I) o8 O2 z( K. I0 W
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
7 t! ]; P H: ^' S Escrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.8 W" T5 I, q" m
" Z0 G+ X, ?5 JA look at credit markets" o9 F/ u F& C" R9 A
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in1 B G& I1 {' A% J5 z$ T9 k
September. Non-financial investment grade is the new safe haven.( @9 O+ e! t& H$ ?
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%3 O; c; v. v, @
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1* }& O+ T" n7 d5 P4 v
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have( G8 p3 @0 n6 t) t8 \2 m( j
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
% \# b. @( Y: nCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are/ Z/ `1 a; k0 {( `( S# T
positive for the year-do-date, including high yield./ Z1 b" g, D* f4 ^ A- ~4 V% Q
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
u3 a/ I% h6 B% e' kfinding financing.
8 j* j; [6 m% `0 \8 h Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they0 Q r# j6 J/ \0 j$ B
were subsequently repriced and placed. In the fall, there will be more deals.7 B* p y4 _! o+ o
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
. R4 C1 h% D- R* \! ois now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were* u1 K% x' ?$ t$ R! A
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for6 ?1 V U0 P/ j) t; K- d- N
bankruptcy, they already have debt financing in place.
S9 @, M0 |' C$ s. _) a0 { European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
" ~2 b" a8 |+ ztoday.
1 K9 \& g/ n1 u2 m Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in5 Z! v' ^2 j6 v* ]' x, U8 ]
emerging markets have no problem with funding. |
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