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发表于 2011-9-17 13:16
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Current situation/ c: ]- U7 Y: i/ ~- B4 ^; c Y
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
) Z3 ~5 H# H! P- A5 E5 ~ S: Y3 Jas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
+ P4 I4 ?1 x; b: s, Yimpose liquidation values.4 X; u# y( s' d \" w0 n! D, E; ~
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
) a- |8 u5 \- _+ rAugust, we said a credit shutdown was unlikely – we continue to hold that view.
5 B% q6 H; N5 G& E, ~ The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension5 `, O. _% E7 d! A7 F3 R
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.& t, J% P1 _- z) J
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A look at credit markets* t1 _: Q: u$ `) A
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in. `# s) X1 r! f& n5 W+ f
September. Non-financial investment grade is the new safe haven.& L: a# |5 ^8 z
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%, b/ Q1 W: v' H
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1 h$ R# i: F3 [& ^( l* }. E
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
g$ M# g9 e- i; u1 o$ ^: i$ j9 Taccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
8 b3 l/ @4 m! ~( T2 U( ?0 MCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
. G, Q( n3 E+ f8 A7 _1 v# N( bpositive for the year-do-date, including high yield.
6 @- F/ x* |' z, L0 M4 {9 ? Mortgages – There is no funding for new construction, but existing quality properties are having no trouble9 D* ?, @! l T8 u
finding financing.
+ U8 _ ^" y) w( y" M- s6 T Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they& q. h2 T. z8 X; x& h7 q& W$ s0 r
were subsequently repriced and placed. In the fall, there will be more deals.+ P3 y; u: [/ ]4 [# n( }8 J
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
, S' o" f. \9 A( [is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
. d, l7 Z1 @+ J. X/ \going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for9 S4 }' [4 V, C# s
bankruptcy, they already have debt financing in place.
% N# D5 K( d; y5 R! B European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain& Y9 n3 z6 X# [
today.$ x+ v6 Q% K6 s* G
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
W. q" A/ \& v- S) h) m9 Demerging markets have no problem with funding. |
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