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发表于 2011-9-17 13:16
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Current situation/ z4 P+ B' a2 @- X$ D, z% ~
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
* H6 Z3 m5 H4 e9 q9 f& k2 A4 vas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
; L5 z5 ^ c! uimpose liquidation values.
- f7 r- ]# ~- P4 h7 A$ Z: K0 o) } In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In m- ^ U1 o7 u% Y
August, we said a credit shutdown was unlikely – we continue to hold that view." M8 R" T" Y0 F$ S4 m
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension3 y( R6 X1 V8 z' ]5 k
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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% U3 s" L* R6 V2 ?: B2 N$ kA look at credit markets" T$ q" y( c/ W: x' Y
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in2 f: m, T1 {9 _7 \9 K
September. Non-financial investment grade is the new safe haven.
( B5 }3 N2 c3 }0 B High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
. b3 } p' s+ m( Gthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
1 _7 _6 |$ F$ m# y6 r' Tbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have+ o3 m4 o7 b& z' y% I
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
* h% M. [" k/ M) m" E4 w( X* r3 s5 MCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are$ a1 r) w- Q1 t7 n7 \) j
positive for the year-do-date, including high yield.1 d2 _3 f- U0 U& w, V( ?# _
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
7 `% u8 Y" E+ ^ m8 v" ]# \2 cfinding financing.' }' W: `+ o3 U: K2 y* E* h
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they3 V7 n4 m( _2 l* s0 l2 C* [& r
were subsequently repriced and placed. In the fall, there will be more deals.( ]' x/ p# i" c F5 Q/ H6 K
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
6 i' K W0 N: b) O- Vis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
# P& g6 h# {3 N4 J: P: Y- ]2 Ogoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
6 ~: Z# v" M' L9 A8 gbankruptcy, they already have debt financing in place.. j5 }' f; {% P: m" A, O
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain6 \$ i9 u( [+ K2 ~
today.; A( z; f4 `( n/ O* N" V; ]
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
9 G7 O" r; T W# }/ memerging markets have no problem with funding. |
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