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发表于 2011-9-17 13:16
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Current situation( E/ \( h6 Q! M* ?
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
; ]4 R, ]' D; B' k* F. Yas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may# z" D8 L9 |6 e6 h+ T+ A
impose liquidation values.* I; S5 y) {7 q. O ?: n9 k
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
% o& s0 B- Q# \August, we said a credit shutdown was unlikely – we continue to hold that view.' ~( X3 p7 ~$ N" p) k4 I
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension8 s- W) k* i( T0 f7 a0 l$ c
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets
& C; @# V4 S3 p Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
" z9 X5 B1 \2 Z& l7 YSeptember. Non-financial investment grade is the new safe haven.! ?, ]2 ?, O/ @1 I% c
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
; s% H8 d) \: S- N" n. a Xthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
- `) v5 B4 K% M; Mbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
0 X6 H& B0 B) t/ ?- \1 i" Yaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
8 O6 Z, E; O7 `( e0 x$ O. H5 ^CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are$ T; c4 Q! J: h7 g
positive for the year-do-date, including high yield. o9 Z* I% n+ @3 @6 h
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
) j) l) H v0 J) i5 P' Y5 ]1 _finding financing.
% w! E2 ^/ a" w1 d/ I e3 o! a Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they$ _. y2 X4 ~; y6 e% N/ v0 Y0 I
were subsequently repriced and placed. In the fall, there will be more deals.$ m+ g% O$ a& N, h; [
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and2 @3 p" y# d, x! C6 q( N
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
9 B- Q' \( N: D7 J' X; `3 bgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for- M$ Y* V* @; j0 H
bankruptcy, they already have debt financing in place.- L7 u# C3 f/ o3 l
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain4 X' Z8 T) y2 o, I
today.& {* W, `' F9 |: ?6 e
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
/ K, B. c! `4 X: U' d& E) h7 K! ? Temerging markets have no problem with funding. |
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