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发表于 2011-9-17 13:16
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Current situation3 B8 s, p/ x s8 f# J
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
J# D k! t) n; ~as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
* \+ l* s+ \" F; S: I+ t% J, nimpose liquidation values.: r0 P; b2 {0 f$ k! b1 M$ \
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In! [( J; S3 l" v/ a
August, we said a credit shutdown was unlikely – we continue to hold that view.9 I& f2 r. p1 ?
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension* S2 `5 [( D& `+ U% `, |
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
& o+ { ?* R, O5 T9 ]. ]$ \; H
- ~9 ^! e8 A, _# E$ p& _A look at credit markets/ j% y6 Y2 o; q# g/ S' l4 D
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in2 d$ c) r+ C" e& B" J6 Y; S
September. Non-financial investment grade is the new safe haven.4 d' [; v6 @. H5 N- L9 B" e, g
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
7 X; n0 e8 z" i" A7 \' X& M+ Wthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1; p$ o7 \4 S3 ]" i' A7 P
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have9 J. b5 z" L L" L4 k
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade: Q$ q$ D3 |, O" y7 U
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are: ?) {, l7 ?& Q% p @8 C8 d+ [
positive for the year-do-date, including high yield.. }2 v# H# R# S8 a4 U
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
4 `; q1 y) W) v& q0 ?9 p0 M& _finding financing.) ?6 c$ {4 n# [# Z, B* s
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they+ W; D& n& p/ m( I
were subsequently repriced and placed. In the fall, there will be more deals.$ s/ z- q- D5 ^5 R c( L( K
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
l9 e! G2 d4 r9 b% @, o3 Yis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
5 K& t+ P% T. Igoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
4 L* R' y$ \+ | d3 [bankruptcy, they already have debt financing in place.
! ~% {0 o6 n" U European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain9 G+ g; L; e7 m! n3 Y' S3 J* @4 u
today.
1 B9 y w% R$ L7 v+ f. f Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
! }+ u' \& ]2 W* {% _, l0 `3 Demerging markets have no problem with funding. |
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