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发表于 2011-9-17 13:16
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Current situation
+ R. w' k, V- H* q E% I- O: q3 Z The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long# g$ Z- P3 V( g" \3 i6 s: X. Z& q
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
7 U3 X) D! s7 K9 M, Q' r: q- x/ f# Eimpose liquidation values.
: `1 @4 e& R5 l/ ]. [ In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
( [( N1 T" |- O( MAugust, we said a credit shutdown was unlikely – we continue to hold that view.6 S4 h8 X5 ]3 E+ {# K4 L8 h
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
% K' C& c) j0 |scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.. X) e% i- U6 M
5 O( y! F" C6 x+ X7 uA look at credit markets4 j7 m, w9 X# Y, o
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in6 _% m( ~( f& G( C
September. Non-financial investment grade is the new safe haven./ X! l% V& z) i: I2 x/ T) A8 R9 \) ^
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%* E! R5 R3 s* N3 E
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1- A8 ^/ w1 |6 h2 ^! u9 \9 W$ a( k/ v
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have8 R* f/ y+ c3 M; n2 z; K
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade) N6 U3 P4 s2 M5 j
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
7 N7 z' J7 ?6 k2 X/ k% g% zpositive for the year-do-date, including high yield.
5 x/ m+ ^: Z7 A. H1 z Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
: @8 E, v/ J0 p5 \* ofinding financing." i$ w& j# b9 u
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
0 U8 D: g Y! r5 c/ J( L, a9 hwere subsequently repriced and placed. In the fall, there will be more deals.
4 E& ]( h. _: V Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and4 D: _/ ?: S* W4 i/ o& m' {9 J
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were0 }2 H4 }! ] x4 h, A9 k" o
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
0 f. ^3 k4 ]8 u4 L( q) d/ Rbankruptcy, they already have debt financing in place.
% v* X( c# @" I9 \ V+ d( o European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
5 @( |! S8 J1 y7 p: R% e( k) j2 Gtoday.) g8 q" d: I8 @1 Q; x- ?
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
4 A" F2 O. l( q/ a! V3 kemerging markets have no problem with funding. |
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