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发表于 2011-9-17 13:16
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Current situation! I; U: @4 X+ q- o- e
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long; X6 ^/ U5 X* n6 ^, |; G
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may9 H8 T j: u, \& B0 u
impose liquidation values.# u4 ]+ o. t* c( R/ }
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
f- V$ h; c3 j+ u, `' {4 [August, we said a credit shutdown was unlikely – we continue to hold that view.
0 L1 M% U+ {% D The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension3 ]0 B: I+ g3 B( y0 v
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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9 k5 K, u% H# ^/ ?# nA look at credit markets
: V( }; J- p5 N Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in/ m3 m) c0 y. P2 w$ o( [& i
September. Non-financial investment grade is the new safe haven.* T4 D* G* K$ j& [% x8 I$ L
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
. C1 }; k6 V$ i, p/ Nthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1! i0 s- v0 X9 G- c6 t
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
& u5 g, `9 k8 h0 `2 `/ naccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
0 q+ P6 k+ V5 }! c* _CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
% {+ x; C# T3 A. P9 ~. ~positive for the year-do-date, including high yield.
' G/ `1 T2 ?* z6 K. J$ f Mortgages – There is no funding for new construction, but existing quality properties are having no trouble( d) O1 n' b/ G+ D
finding financing.. ?& S C+ l9 i
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they& F' x) D" f* l$ Q5 _7 Y
were subsequently repriced and placed. In the fall, there will be more deals.
! g; [& L$ Y: |' U7 E) r Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
; ^; G% w4 ?8 D! ]! E# ^. H7 eis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were% c. d/ t1 t4 B: D
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
1 w. C d7 o7 Q$ ^- t0 T- r4 }, A+ P! Bbankruptcy, they already have debt financing in place.: V" h x' M9 H, x* L
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain) P$ ]( g, j+ ]5 M
today.3 z" A' p# L2 x, @9 {
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in3 ^9 ~, @# Z9 d2 L$ d2 C1 w- @3 }
emerging markets have no problem with funding. |
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