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发表于 2011-9-17 13:16
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Current situation
; I N3 ^, l5 g# }) Y9 w The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
/ Q: |3 R- X, O9 ^4 k" eas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
+ U9 s Z- ]& e5 jimpose liquidation values. L4 r" h9 ~; V5 c8 ?% G9 O6 m: X
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In$ V# Q/ K& V2 s8 U# F; \
August, we said a credit shutdown was unlikely – we continue to hold that view.9 u1 c2 w0 ?8 @3 w) O
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension; I4 E- p, s/ d- I/ V
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.4 D/ N+ `( i. Q1 J& W
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A look at credit markets
; [# l* t5 N; j+ Z) B Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in" X, E9 S9 o2 i' A- e/ ]; D
September. Non-financial investment grade is the new safe haven.% B4 W! c. ^9 f) u# ~ {% F
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
6 ~3 l) _% _$ v( O! m& ~then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
9 ^5 S6 J) H: P2 ibillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
( t8 R0 [1 H8 E$ ~access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
- |7 a7 f8 t; E, \2 p3 OCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
* r4 |5 [0 L4 O$ A8 u) m. K/ s& Cpositive for the year-do-date, including high yield. K }6 N- S {# D, d: h
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble8 Q3 a8 g) g, l" H+ e
finding financing.+ B3 `/ _6 v1 @: M# J. q
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they! c. z ^% Z# }& n+ I+ \
were subsequently repriced and placed. In the fall, there will be more deals.* P; b" Y- Q; \+ T. e+ J8 h; [
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
: v4 ]& a- F) U) vis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
5 Y/ @2 i" r' Z2 [3 F! xgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for5 ?0 q& H0 Y# F5 d: {
bankruptcy, they already have debt financing in place.+ g. V$ |& \6 y+ [. G5 S
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
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 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in. l( [4 a' g% k) L, \- q
emerging markets have no problem with funding. |
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