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发表于 2011-9-17 13:16
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Current situation; V( p5 N4 B3 ^
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long3 Y+ X- {, V s X
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may. e% ~3 ^; g# K7 t6 N( O- |5 ~
impose liquidation values.
- ~' }0 \3 ? J6 s In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In" j( d+ i# _% ^& z( ]/ k
August, we said a credit shutdown was unlikely – we continue to hold that view.
* M( F0 w, R- m1 P The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
1 a0 L3 y5 ^0 d' |scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.' t( m* W, R$ h# c3 ?) W! V
6 i( L5 ~8 k* VA look at credit markets5 n, x6 i: Y) ]( Z5 L
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
8 v7 n2 L5 }6 D2 L, q! K+ ISeptember. Non-financial investment grade is the new safe haven.
6 h6 {1 Z$ X" U/ i4 e High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
( M7 y8 p2 V, |9 s; Q4 Hthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1( m0 J: Q1 r" b5 l& e9 r; f
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
7 @$ J* W% H/ b9 \( y C9 b4 N! ?) Naccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade: L) c8 X' w& s' n* e
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
6 O6 h' e+ R. i# Upositive for the year-do-date, including high yield.
: m3 a- J+ ?% e$ |5 G& z Mortgages – There is no funding for new construction, but existing quality properties are having no trouble `+ \* W+ j/ ]. C& |$ K
finding financing.
2 ^7 g3 }4 H4 g ? Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
7 X6 W/ x& k1 f; o* j4 b+ ~9 awere subsequently repriced and placed. In the fall, there will be more deals.
* Q/ G |2 y, X9 f) y) ~ Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and2 i& s- B; h3 f( e
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were0 m2 ~1 m( Z- W
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
4 V E B" |$ a- B, }: r, wbankruptcy, they already have debt financing in place.
- w2 {% j! |! c! h1 U& z European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain8 _) P- f& u& Q5 e
today.5 K+ ^4 U0 f9 t& W
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
% f: z% c3 N4 E+ `; i3 ~% @4 [emerging markets have no problem with funding. |
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