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发表于 2011-9-17 13:16
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Current situation6 C0 p& U2 v9 F6 L$ i( Q
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long/ ?1 ~) ^3 T/ c+ \9 z, Q
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
7 v/ u3 O6 Q, V% R# g& Timpose liquidation values.) o! h4 B! Y! c
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
8 ^9 l8 V3 J5 ]3 p# ?- E3 Q( NAugust, we said a credit shutdown was unlikely – we continue to hold that view.0 W: p2 s2 A0 g# @9 s
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension- v1 b' |8 Z( P" j( ?
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.# p5 l# Y& @9 L% u- V( T
6 K3 G+ g# j8 Q0 r7 mA look at credit markets
s: l! {9 Z) ^+ n Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in' U/ _- ?2 W y5 v! o7 l
September. Non-financial investment grade is the new safe haven.
' C. R! ]; U$ |9 r2 C High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%9 q2 j0 D' j! l ^
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
/ V+ B0 U3 p" n3 B7 Nbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
8 j" K3 y" G! J- u! U2 j# W6 @2 [/ daccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
8 I, u% p) k j0 [% u4 I$ ]1 p" LCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
" A) G4 u& I4 G3 P' Apositive for the year-do-date, including high yield.* I) h S) v- I) T5 N
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
! E( u9 @# B3 V, p3 x* a, afinding financing.' r# }6 A; S3 J1 Z( x( \9 W& W
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they* z" y! p/ S* x2 n; b! F( m1 _
were subsequently repriced and placed. In the fall, there will be more deals.
; B0 U% M8 W% @4 J0 o# W Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
/ F& U4 E! D. tis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
. n1 R6 S$ D6 i3 K$ \going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
3 z' t& R$ v0 q4 m7 M! bbankruptcy, they already have debt financing in place.2 X% F; D8 j4 E4 |; [
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain+ F" J% v; R3 N; C/ W5 _ b4 M
today.
4 p1 T |9 b( ^6 m V Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
: O) Q8 O8 w. n0 y& kemerging markets have no problem with funding. |
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