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发表于 2011-9-17 13:16
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Current situation4 v( m X8 Y% C8 F0 V/ Q
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
0 s7 }' W& |: ], [; e2 M5 [. _as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may' ~- i; S6 ]8 }
impose liquidation values.9 L: `. V* P7 W% L4 s
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
s' K: q4 L- X" Z6 w7 I8 a, ~August, we said a credit shutdown was unlikely – we continue to hold that view.
7 g# Y8 e! j; o" q' v) M+ f The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
2 e: X" s+ ~6 I2 L( Lscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.1 x1 ~& M- \+ f. N3 k8 v
5 f) w. O5 S/ lA look at credit markets
" k9 o$ h0 U# o+ ], L5 C6 i Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
5 O4 N+ X1 p6 p6 K# w. E) PSeptember. Non-financial investment grade is the new safe haven.# R4 b6 i z8 Y2 J( o* p
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%8 d+ E8 |. L) J
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
0 T' D( ?! a1 V2 e1 tbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have9 Q5 z& A5 `4 ^5 s6 t+ }
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
2 w& C2 \ G' P& I* SCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are# r% L/ I2 g6 N/ H* w
positive for the year-do-date, including high yield.( D' F& h. h# |& D/ p3 ]% L/ v
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble2 T, b: c, E* } V
finding financing.
5 X R2 i$ i2 V: {" p, L/ Y# | n! ` Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
2 m9 `; U5 F+ q: x. q- b( l/ Awere subsequently repriced and placed. In the fall, there will be more deals.5 j: r& \: O8 D
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and* o. |& B/ e, F8 t1 _6 ]1 P6 d
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were; k, _! Q( Z. X' f$ o
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for4 I" ]9 n8 b3 M; ]+ x
bankruptcy, they already have debt financing in place.
) u& G& T& h: A8 H* I) f! ~ European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
% u/ G* K( a" E/ E0 t% x0 Ctoday.. f4 [; d% I* D2 u5 f" @
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in- {$ M% m$ l5 g: j; Y
emerging markets have no problem with funding. |
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