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发表于 2011-9-17 13:16
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Current situation
: E( p8 s; S$ B* f2 p# g# R. X4 z The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long: J0 e& W( {1 N, b! |% L- V7 w
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
8 Y3 g% Q6 i' d7 z. yimpose liquidation values.
5 S. S- y/ W8 w5 [. ?- x In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
4 a- `% ^9 v& c% ]August, we said a credit shutdown was unlikely – we continue to hold that view.
% p6 Z1 [+ L2 i The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
5 @, J1 t+ w: vscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.+ n, l1 ^# a# u" c- L8 j Y! V
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A look at credit markets- p R7 V* t- y$ s a+ p4 h
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
$ M+ H# y" G( I: s a2 |2 GSeptember. Non-financial investment grade is the new safe haven./ k' d2 G4 B. z4 D$ ?$ }( R9 y; t7 G
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%8 v/ x6 `: Y$ ~8 \5 d0 d
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
' Y$ g: l1 O3 r8 h0 r9 ?. }, q/ bbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
# P5 ?% m2 |& N8 V9 [- G) q; caccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
9 H7 a! t& T$ }( v* M4 i" qCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
0 b: o9 I9 b8 b6 C4 wpositive for the year-do-date, including high yield.3 b8 U7 ^9 O0 h# {+ T: E+ S% V
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble0 F, V8 o% r, i: }- {4 V2 R
finding financing.: L% _/ J7 k1 H7 p9 R' u2 G9 H _
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
7 f# E1 \5 I) W$ V% swere subsequently repriced and placed. In the fall, there will be more deals.
+ I, X. D% l) B/ O6 {+ e7 _5 P Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and* f% X3 i( A# }1 M
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were; e9 `/ R& V7 {; R; E% h
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
' Q/ h5 O: ]2 B0 H& xbankruptcy, they already have debt financing in place.
0 A+ H, u$ f, h, z European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain- J3 |/ W# t: {0 z
today.* g* C; p# ?( B. Y9 l( P
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
$ p5 j( K8 C2 j; ?/ ]7 Q1 E! Cemerging markets have no problem with funding. |
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