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发表于 2011-9-17 13:16
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Current situation I3 n# `# v7 q/ s
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
3 ]" T% N8 m( t5 o% N: j2 J9 Pas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
2 q# l9 t. l/ k8 v4 }impose liquidation values.
5 f% s0 k# {2 Z/ n In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
5 M( i3 k0 M% P3 I+ u7 nAugust, we said a credit shutdown was unlikely – we continue to hold that view.
, D# ?& o* f3 I, C The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension$ d! U3 C' } K
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
0 @' q) U* l" i6 a1 j1 U6 C0 X4 Y. a- }- ]
A look at credit markets9 |/ R, p4 ^# u% j* x
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in: w+ d; n, z8 B# c8 e& P* Y. N0 H& x
September. Non-financial investment grade is the new safe haven.3 \" L$ w0 z% ^( U8 }% H1 g
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%" N+ a: P3 h1 j, y& R
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
I0 I# j8 y) L3 G3 _7 mbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
( z& L# Z5 i9 ]3 v* Kaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade2 {5 }+ R5 Q8 B0 ?4 w
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
) ? E& l2 d' |% Z6 ~$ S! wpositive for the year-do-date, including high yield.
# x! P; S: Y& p {" n/ B8 M! r Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
5 ? a+ p/ q5 G0 Dfinding financing.' o5 j( r8 Y7 S/ I) Q( A0 j
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
0 \$ q9 \- q8 I }! Lwere subsequently repriced and placed. In the fall, there will be more deals.1 B n; n0 |% ]3 W
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
O( o9 r% N( kis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
) X B6 z2 M# S+ Agoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
: H5 D+ i$ g% f) x$ Ebankruptcy, they already have debt financing in place.- Q* u: {7 j0 [
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
5 _6 j o% m$ q& M* p! i4 ptoday. U* Y& s& l2 I0 r* Y H" t5 L
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
* x( ]! b2 n- C7 r/ ?emerging markets have no problem with funding. |
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