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发表于 2011-9-17 13:16
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Current situation% H8 M( p) z6 B/ l. y v/ F* Q- _
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long8 O) d# F7 f) J+ e: O. z5 ?
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may; X& F! O' f. H% j; i) _
impose liquidation values.
9 z/ X- o. z X1 @8 K In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
( t/ g4 ?6 w3 v# v0 C4 IAugust, we said a credit shutdown was unlikely – we continue to hold that view.3 D, _; b% H9 T: w6 I
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension& l0 N% Q+ ]% Z4 M9 C
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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2 W3 d5 P" D+ o5 ?3 k% fA look at credit markets
9 I5 J1 ~( |+ o% G' g: l$ R Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
/ `0 ]8 n. X2 E4 N( t% _! @( q- M( _, pSeptember. Non-financial investment grade is the new safe haven.2 h2 _ r$ T& W k8 D2 o" @
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
* e1 C* a0 J4 b( s6 G3 Z) Qthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $12 h" w9 W. h% p0 ^: V
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have* ]" p; [$ G! q& w8 ^" B. J
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade/ h" d q k7 c
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
6 a+ \- v) \' Z; cpositive for the year-do-date, including high yield.6 b4 Y. ], k3 O* x) n: y/ @
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
# c& H9 l2 x) A# a0 \0 A+ I+ F% \finding financing.& q: d) L' c# z4 S/ F
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
0 A1 X- _$ r' Lwere subsequently repriced and placed. In the fall, there will be more deals.: v8 @. h2 \- p+ V
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and' d) W# b( M( c; y1 X& i5 G! o
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were+ r. A: S4 C4 m' _& l- ?- f
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
" I5 |; V2 k" y" ^0 A& s. Abankruptcy, they already have debt financing in place.9 h" M2 P+ p' v4 l
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain3 Y% G6 j7 T" m$ o" _
today.
& S, @$ L' ]: C! {1 Q% _7 N Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in2 |- ^7 h" x& y% V% C" R i
emerging markets have no problem with funding. |
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