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发表于 2011-9-17 13:16
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Current situation9 A: Q3 x8 w& u
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long$ D3 ?0 P. X, W
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may. Z- B! L" V' K0 v7 A
impose liquidation values.9 ^, Q* \+ ?8 Z; b
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In$ H: q% y `% I4 G9 Q- j$ q
August, we said a credit shutdown was unlikely – we continue to hold that view.5 y) j* b9 M0 v7 P( ~1 j6 H
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension2 I6 S( B# X; p _* N% k! y
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.+ w3 W# R% k/ ^5 h* }0 h$ ~; v
7 ?% u9 y: Z' o$ X8 }A look at credit markets) h3 {" A5 {( [) T; Q T
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in$ P7 S; V, c+ A% _
September. Non-financial investment grade is the new safe haven.6 ^5 s/ X: k, z2 B0 @ V2 i) |6 M
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
# T- q. p. k0 b; B4 uthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1: i0 T; ^$ F9 L9 D3 m0 O8 f
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have, U- _2 U8 ?7 T4 \0 Y* ^' N/ n3 C
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade: P$ |9 F3 y8 ]2 I* f; o; _0 i
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are5 Y* Y- E& D4 ^- v
positive for the year-do-date, including high yield.
! H J/ Z" {$ D, ~3 f5 O& f0 v Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
}* L3 v7 L' E' V4 ]finding financing.
6 b# G0 C5 u* ~. ] Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
7 v* Q: e0 t2 e+ L! q- Iwere subsequently repriced and placed. In the fall, there will be more deals.2 b9 \ e+ p8 x5 Z( D
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
5 M0 b: D8 _* U4 w% L- k+ Bis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
1 K6 t6 e; b# t3 v" q! ^going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
# ?5 E8 e) @! r7 bbankruptcy, they already have debt financing in place.% m) c6 C c! f* R& ]; i4 n. ]6 K- Z
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
$ o" p$ x9 Y; R7 ^) Utoday.# E8 K. f9 m0 q
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in. |9 t# I9 F8 |+ m" q
emerging markets have no problem with funding. |
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