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发表于 2011-9-17 13:16
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Current situation+ N, F5 n7 N0 A/ k. ]
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long; G) Z9 x0 t* j$ S7 `( h1 m! @
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may, R, R2 `2 x- d: C3 ^
impose liquidation values.; O6 H+ Y9 Z r; {0 w/ J
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In) u: I8 s. h4 p7 }7 W
August, we said a credit shutdown was unlikely – we continue to hold that view.
' ?* G4 r5 g) x8 t The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
$ E# e2 P+ {! [ r8 f9 `scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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8 C9 ]9 R# a; {$ S5 oA look at credit markets
, H2 _/ K* W2 g1 T; Z Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in6 D3 X4 J8 C, o$ a7 Z0 P1 {) @
September. Non-financial investment grade is the new safe haven.
) G3 F$ o# L$ i% e6 H High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7% x( d6 u0 r" F% C
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
* J( p, a8 q: I$ pbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have: V, }% t) Q3 i7 y0 T
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade! C- D; C6 | {- e9 K: Z) z
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are' c3 F" X0 M- {' t7 O9 p
positive for the year-do-date, including high yield.+ V* R& f* y1 t$ a6 R) H
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
8 P; w( s" N: R: tfinding financing." ?4 B( s% I$ T6 o+ H$ B* T# S) Z
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
4 c4 `! j* ^8 d$ G: Gwere subsequently repriced and placed. In the fall, there will be more deals.
. Y$ A( E; l* s8 L `6 m Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and. Y% F/ X; f8 ~$ j8 r( W/ q5 w7 A
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
1 o: l/ a3 h* Z2 n0 w W! hgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
/ e$ c1 }: T1 g; f8 l* @& k bbankruptcy, they already have debt financing in place.. n' o' ?- h# N3 w" ^& _
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
, ^5 J6 j6 p, g( ?- F) Stoday.
* s( M. E( W" a Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in: \/ S0 [* |4 j6 J8 L, D" f
emerging markets have no problem with funding. |
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