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发表于 2011-9-17 13:16
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Current situation% G4 g. p% W7 H8 ?, ^
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
% W X" k5 J2 H( ^6 O9 I& h8 T5 m4 ?as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
6 d% e: M+ L! vimpose liquidation values.. |- A6 D' g; _. F; J
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In& E6 T1 [: W# ?9 N \8 [% d
August, we said a credit shutdown was unlikely – we continue to hold that view.
) t+ F2 [1 q+ G0 N The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension$ [1 f7 u+ h- N" C! J) E
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.4 ]( P% c K: m( c
: A T* k) x4 J* S! p, ]* w- B# AA look at credit markets V( p! d+ A3 q9 ~7 {+ |& b
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
& L% V7 C- v! k# Q; hSeptember. Non-financial investment grade is the new safe haven." L8 \6 ^% z; ~! [( c, f" ]
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
- L' j, U5 H8 t. s3 V) g9 G9 z, Gthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $13 N* e3 f x5 H$ `, A+ \9 _# @
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have. t$ Y+ {( G' w9 X4 h4 D& T
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade+ t3 P% I- k7 G- C6 F' ~" w4 `/ L( R
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
! q, _7 m4 p* u" E: `- ?: \$ I0 Ypositive for the year-do-date, including high yield.
) b1 u* k- C5 m; c# [; T Mortgages – There is no funding for new construction, but existing quality properties are having no trouble# w7 L3 t( I6 s7 m$ G/ s7 e
finding financing.
- s0 ^ J1 R3 q' s" r2 f, m) _# I Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
1 H2 {8 E7 H2 J8 L- ^) X3 Swere subsequently repriced and placed. In the fall, there will be more deals.
( A% O* m7 L' m A Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
7 D9 Z2 D# U+ \: B( J4 n. Jis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
$ ~3 O) j/ u6 u3 @2 k% V: p1 h* Fgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for4 X& O2 ]; d, z# c! }4 @9 ~( d
bankruptcy, they already have debt financing in place.! T( L6 g, u" r, P1 f* ~' k
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain2 m R( K! u% S9 s0 {! M) V7 ?
today.
" T( f) w! k* H) P- G Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
0 M% |. X/ v" k) n( kemerging markets have no problem with funding. |
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