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发表于 2011-9-17 13:16
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Current situation+ `& i: ~5 a7 Z1 L+ x6 h
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
# m% s3 C0 w$ j* D; f+ `; ]as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
# J( ~0 Y g. L+ u7 u% Y- j3 timpose liquidation values.
" k \( m/ w" Y$ |7 w, Q z In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
- N: ~; `: V- v; t, p. r; c: ?- ]3 IAugust, we said a credit shutdown was unlikely – we continue to hold that view.: S- ^ T. [, U( t
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
* T1 F7 ^6 b, N6 Y" `) k" D; Qscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.$ N3 g G% K" l/ u/ d& l; Y4 R( M
3 M, A4 e i- y, c9 @
A look at credit markets) q9 {$ Y$ }0 S6 F- g, T1 F
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
* _" }- J. J' }. u6 ]September. Non-financial investment grade is the new safe haven.9 s( H, E. H% o
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%4 g" K7 R/ b3 e7 _: ]
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
/ Y! S+ L2 z% M! T( S6 i" w }billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
; W8 |2 k; S0 Raccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade3 k3 F ]% F) V$ X- Z( z5 W
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are$ I& s, G3 [7 q& T
positive for the year-do-date, including high yield.+ `; N" b6 R G+ o2 m
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble7 n) B& c2 _. s: \- G
finding financing.
( T* ^; g1 g3 |- ]" x- O Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they R E* F! A4 x X$ f
were subsequently repriced and placed. In the fall, there will be more deals.9 o0 ?; X+ [3 s; \! f
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
9 j1 t6 K1 z4 H; c M9 X" dis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
& t0 ] E6 b7 V8 P% q X" ^going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
; q) ^, I1 O, Z+ w! nbankruptcy, they already have debt financing in place.
* O2 p# y' x# }" y+ q- v- F European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain% e/ H3 _. R/ [8 o4 a0 ^
today.
7 ?6 \8 G, i6 N; a4 {. L c Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
9 |, j* e' f2 ~7 Kemerging markets have no problem with funding. |
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