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发表于 2011-9-17 13:16
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Current situation) g9 ~" X/ p% S' P5 W
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
1 t0 G `& Z; A/ |5 m" `" u3 Tas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may2 q; Y) n: n& v5 l" v$ h
impose liquidation values.3 J; F0 t" |$ h4 U- ]( T
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In* T" N$ D2 o% ?2 @. T* k' w0 Z
August, we said a credit shutdown was unlikely – we continue to hold that view.
9 Z0 b. v) T7 X- n6 ]0 U The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
" Q# s6 h& B( b& W. Z/ iscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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. a2 e' Y5 Q) XA look at credit markets, v, ]1 {' r& ]. ?7 T E. L
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
; i. r+ P/ a! J0 D/ VSeptember. Non-financial investment grade is the new safe haven.# G- g# l! S' e2 O! L3 s+ U
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
* Q. K) t4 q# f3 bthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1) h' t7 F4 _) e9 {3 Q) `
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
k4 G1 w) f3 J l) ?+ Jaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
! |8 L4 y4 E2 Y! _CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
8 E& w) w; i- X: ~' o/ z$ Epositive for the year-do-date, including high yield.( j$ S# _+ W0 j5 k" j' B
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble! [+ ~' s$ z! R2 R- l5 ?$ f
finding financing.
. R W0 p1 q2 \# p0 b$ T# c Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
8 _7 D/ \! f# M1 b% \4 }were subsequently repriced and placed. In the fall, there will be more deals.
& }* }$ U0 G" u$ I; s" P3 j y Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and- r4 o$ X/ r6 I, l4 m, ^" V% y
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were+ `& D' h2 B u. S" M& X4 X8 x$ a! i
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for1 V, z$ k6 D6 H. D
bankruptcy, they already have debt financing in place.$ p7 l5 Q" m# B* B8 {7 Y8 ?
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
6 J# u9 E4 o; }today.
& ^* Q; j$ m5 F$ Z& O8 M) S1 j3 N Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in9 C/ h, g) ?& h- [6 d) x' c
emerging markets have no problem with funding. |
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