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发表于 2011-9-17 13:16
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Current situation
- _3 F; R& f6 t5 u6 b& Q9 F The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long1 C8 J3 F' ?* ^. O2 y: P# ~
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may; {8 J2 W: u7 c" y/ t: I
impose liquidation values.; l( D7 m* Z$ y+ O1 J
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
6 T- y9 P1 j V& F% y# B. ZAugust, we said a credit shutdown was unlikely – we continue to hold that view.+ a, ~( }/ g# \3 Z
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension: j4 z4 {! g& f; A& ]6 ]* \
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.7 N J+ j( p9 X8 s
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A look at credit markets
/ a: e, y1 Q9 V: \# ^" U' T Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in( o7 x0 |5 t& `2 X$ p
September. Non-financial investment grade is the new safe haven.6 i3 }! b& Y2 i: |6 {7 c6 {4 J
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
! _# [8 M! x( S- I# G4 O+ ]/ M8 xthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1* r* }( X0 Q" ^8 g1 l! Y) U
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have/ p2 T$ A; N$ n5 V! y8 @/ Z: c
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
- Z+ S) @$ T) G0 T; _& A! ]( \. vCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
6 `4 f C% a! Q, a0 x$ Xpositive for the year-do-date, including high yield.' e/ l: Q! M) ~4 G
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble y0 W; G; l* {( V( i4 |
finding financing.5 N* `+ Y! O O1 ]# M. E& P
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
6 R% i- [; V1 U" i) P5 o: e% l0 g3 fwere subsequently repriced and placed. In the fall, there will be more deals.
^7 ^" J, A, |+ @ Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
' F( h4 h9 s2 I; O( E; vis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were1 Y! ^) \* h6 J- W3 D5 R8 j
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for. Z+ }9 r/ {; ]$ J# o( e
bankruptcy, they already have debt financing in place.8 @: |+ i' m- }0 R
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
, S1 v0 a5 ` etoday.
" H# L, C7 `: o4 S# m Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
( U& `; O% m2 \+ x5 vemerging markets have no problem with funding. |
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