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发表于 2011-9-17 13:16
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Current situation/ E3 b* c) N" ~' Y8 _& V4 J% U
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long8 ^9 A+ p5 v* z$ [$ w% V' s
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may- o& B+ I) y+ s! N8 \
impose liquidation values.
) P8 M" g o. W3 \2 o In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In# g4 K2 x2 q$ [; E) Y( w: P+ C3 T
August, we said a credit shutdown was unlikely – we continue to hold that view.# n" t7 H% I. @
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension2 b: S: W" P2 b! @' ~3 x- M
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets( _& Q2 N- `9 {# P* J
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
$ t: u4 \- |6 G$ wSeptember. Non-financial investment grade is the new safe haven.* ?' d) i' z4 O( n/ p
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
: u1 m9 p! H7 wthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
. V X" _8 p" b) \+ Obillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have* d( E; \# p# L9 G3 V, p$ k$ Q7 g/ Y
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade! F1 b3 N% U/ J
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are" l" ?" l8 l }, V
positive for the year-do-date, including high yield.
/ @/ v, ? N, f Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
0 L# ]7 E! s4 }, @finding financing. U, S$ }2 |9 B- |$ |! @! |0 f9 e
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
9 w4 O9 x" o3 [4 m0 owere subsequently repriced and placed. In the fall, there will be more deals.. F, X' i U: C7 r
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
" n4 x" V! s4 ?8 Ais now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
3 w" _' w3 |( p' }3 r5 Wgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
# j# ?6 R( v1 Gbankruptcy, they already have debt financing in place.& B9 {2 Q+ ]: X, R% t+ T; j( G
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
5 v( O# j3 \/ B6 ltoday.( v6 L$ E! h3 u. f
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
# r: V d' I, E( |emerging markets have no problem with funding. |
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