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发表于 2011-9-17 13:16
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Current situation+ a4 ^; r2 q! I2 r! ]6 Y: L( o
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
" B. ]6 b$ ]+ b; j3 g \# Xas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may; @. v8 q5 O- L
impose liquidation values.: }3 c1 c3 \7 v3 G& K" [+ Y
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
: S' o7 p) J* U0 mAugust, we said a credit shutdown was unlikely – we continue to hold that view.
% {8 _( W! J% ` The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
( w& n6 H$ N' {. F) }& i" K) X; ^scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets, {; X6 x' Q3 x7 d
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
- e5 L& Y+ y5 L8 ?$ m; hSeptember. Non-financial investment grade is the new safe haven.
, @( i- u4 h8 x: v" Z) n High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
7 }, ]6 G, [) K8 q! _) @then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $14 P: O% g6 d* _3 `: d* J- E
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
3 g% K! g( Q: S. G7 v$ w7 saccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade+ y& M! }. Z$ T4 K0 Z9 O. F2 j
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
2 T: ^) `0 B: mpositive for the year-do-date, including high yield.
1 N8 B4 i( B7 b5 y# Q7 A( I Mortgages – There is no funding for new construction, but existing quality properties are having no trouble+ {6 t5 O' F: u
finding financing.! }* `4 U* V+ H+ y1 [* ^
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they; z! y2 P* ?" d9 ~$ s9 i0 J6 H
were subsequently repriced and placed. In the fall, there will be more deals.4 ]! V% ~# [2 r+ h: N! ~* z! Z
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and( _5 U, o; ]+ \; w0 n3 o
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were. u( A/ ~ e2 A) T" {1 [
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
4 A6 U* b0 k7 I' |" D J! M" Wbankruptcy, they already have debt financing in place.: { D% B% I# n# K! f9 g
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
* h9 b J8 q, B+ p# ztoday.
8 D( e+ G) P# i. I Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
3 W0 |. ^1 V$ E4 [5 y$ \emerging markets have no problem with funding. |
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