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发表于 2011-9-17 13:16
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Current situation4 Z* r' i9 \) J8 U5 v* B
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
/ }2 G; O- y$ j0 {- z9 Z2 k/ Sas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
( G, i, d# ^4 V6 C- jimpose liquidation values.
$ m6 w6 r5 B$ H7 P In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
B5 H+ w U2 u) PAugust, we said a credit shutdown was unlikely – we continue to hold that view.
4 q z" w( _9 a- b The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
# h4 @- t$ i( |. g. ascrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.7 {4 E& V( f+ p" M
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A look at credit markets; ~8 i4 G. E% V, \& A
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
- t' z6 j% U, k( kSeptember. Non-financial investment grade is the new safe haven.% u4 J2 S2 U A& }; e3 r+ u/ p
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%: S6 Z: p% l" Q# p9 p: G" V
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $18 K6 m1 L5 X# d& Z1 [8 r9 A
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have9 T: z2 W/ L. T$ o) ?) a
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
* D5 ]5 @8 _" [9 ECCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
2 l2 H" M% f" j% o* x( {' v4 Vpositive for the year-do-date, including high yield.+ r' ?+ T1 Z v7 _& X: }1 v
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble8 s6 T% }0 d% s4 Z5 W3 Q+ n* b
finding financing.
S1 k, H( @7 E Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they7 M. C5 x3 O3 ], u& F, K
were subsequently repriced and placed. In the fall, there will be more deals.
7 N% ~' l3 Q- b" T' X Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and4 B, Z1 T2 H2 E) o
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
, z& R! u' M$ l3 E' Egoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for' H; O$ P3 G3 _6 [" p9 z' l0 A+ l
bankruptcy, they already have debt financing in place.
" G- }! l, O" v$ H" W! } European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
2 v3 @# i( F( N3 n1 |3 U7 O' @! ttoday.8 \! ?: |) g3 u3 B5 w5 n
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in- P; @& R! v9 E* h% |; H/ B! h! q$ ~
emerging markets have no problem with funding. |
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