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发表于 2011-9-17 13:16
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Current situation/ J4 H$ G: g- v3 G0 w
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long& A! J; _5 }2 ^, u2 c& w
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
) x5 g: `8 @- f- @2 `impose liquidation values.# N9 s6 `3 U x- h3 t7 O
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
4 N5 y* y( U7 e& ]; J. e5 NAugust, we said a credit shutdown was unlikely – we continue to hold that view.
8 f9 p$ X- s1 x% e& L- s" { S# k The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
; S7 T2 Q6 D' C! A5 f; ~9 A! i& W* oscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.& M4 F7 @; ]4 o" L
N K7 u0 R" f4 n* aA look at credit markets
9 Q n' N6 m% k3 e* K& z! } Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
, t1 i8 o' r! \+ y: \$ O& uSeptember. Non-financial investment grade is the new safe haven., T+ o% d2 e t% m$ s3 K6 U) R
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
8 N8 l C+ X5 d5 W1 {then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1* f9 X! E8 ?# x% x) f8 I
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
y4 w' r ~! F% o: W' xaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade2 {2 E4 m; V4 W" b
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are' \* _& t2 U, _# p, _
positive for the year-do-date, including high yield.
3 o3 r& u8 x; l1 B2 l( X, p+ k Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
! Q4 w6 k) t) K1 Y( ifinding financing.5 \; m9 O: W Y, T/ p
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
; Q5 {9 X8 ^- I5 V$ W3 ~8 d6 ywere subsequently repriced and placed. In the fall, there will be more deals.
" p. A1 i6 L7 Z Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and# Q# t& r5 b" x* t5 i8 |* y
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
' p9 [2 @, r6 M! {; F3 hgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
# r* ?1 N) g$ ~$ bbankruptcy, they already have debt financing in place.
5 J; T# n6 u' o6 R European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
0 ]$ z# h. U( N: K7 t6 Ctoday.
$ c) c6 d. O* D5 d9 O Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
m% ]9 c- c i. n( demerging markets have no problem with funding. |
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