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发表于 2011-9-17 13:16
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Current situation5 y _" n- _% j8 p; Z- ]; Y( ]5 H
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long0 O* q+ ]! `% F2 C0 [" G0 c
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
( l( E" S6 S) J/ d: Wimpose liquidation values.! x$ n; j6 W. ^: P7 x# K% [3 Y ^
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In& \3 d5 g7 k8 X& w! w
August, we said a credit shutdown was unlikely – we continue to hold that view., ~( c( S6 G2 ^/ Z2 s% {$ {7 \
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension# U! f# z3 W( ~2 w& Z* l7 y
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets% |& g5 T1 a# u2 ]" i6 G8 ?
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in4 A4 o$ N) Z! v2 G
September. Non-financial investment grade is the new safe haven.4 J7 ?' s. A/ S L
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%5 ^/ ]: J B) i# W
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1( Q2 B2 p2 U7 ^6 A
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have& l1 U; i( m6 ]0 ^' Y
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
# R2 s$ ~+ R5 p( m4 \* i( m zCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
8 o3 L. e& X6 ^- Z+ ypositive for the year-do-date, including high yield.2 ~% k5 Q" U9 z0 a- j
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
' _1 f) T7 d/ X: f% o+ nfinding financing.6 @' ]- l( `; r% ?* P- Z3 u
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
3 b% B! X- U% M, f" W/ vwere subsequently repriced and placed. In the fall, there will be more deals.
# q# G' C, J c- W. s/ F/ T0 v' P Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
4 n R7 d1 h6 D+ g8 mis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were$ N% h9 b; z: O# }: J* b: g7 r" k
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for7 x- g' c# [( }+ f" F& v. M
bankruptcy, they already have debt financing in place.
; f( Y3 q$ m/ o( v- C' R, F2 s1 v European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain/ ^' D/ j/ O/ t D4 t9 B' f# W
today.7 h4 X6 B2 ^+ M9 ^
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in. @4 `/ o$ W# I. |
emerging markets have no problem with funding. |
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