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发表于 2011-9-17 13:16
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Current situation2 P9 N! H! h* d5 Z
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long% h- I# {) U1 T/ h9 O, Z: s
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
% E3 L) k( \ v. f) Zimpose liquidation values.
- K" B+ h- W9 O In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In4 l. b0 ?2 B- \- b+ {. R
August, we said a credit shutdown was unlikely – we continue to hold that view.
- n& D" q X" { f' P' A+ T The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
. A$ p( o: |% J7 mscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets& t. z, f2 N* s
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
1 N" t$ r# t5 u4 @. ?3 ASeptember. Non-financial investment grade is the new safe haven.
& y6 N) o' x) b" O High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
" ?6 S# B1 \$ c2 }" G/ }then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $16 r6 G+ h% Q5 T2 i( i
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
3 H7 s4 a {6 d, ?% z( Y# Eaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
0 _% u& y+ c% i2 DCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
m! U: A3 H0 D2 zpositive for the year-do-date, including high yield.4 E' u4 m0 T8 H5 h/ @7 b
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble% Z, }2 P8 O) P V# t$ j
finding financing.3 `. P& v( { w4 w
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they: m- G& ^) ]0 D2 j8 H
were subsequently repriced and placed. In the fall, there will be more deals.
, `6 y/ y3 ~& N* r; V6 P- W- ` Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
" n7 n! ^4 N1 l4 I# m4 M3 Tis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
2 `6 ^! [9 O5 j/ a& K7 ygoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
* i3 { t* @) z% Q/ J0 H5 | `bankruptcy, they already have debt financing in place.
. M2 d" s) H9 V European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain" T% }% U( M) k( @+ q7 x
today.
% z+ I. R) M5 s1 T( B! G Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in+ q- I: C, D" W5 X
emerging markets have no problem with funding. |
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