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发表于 2011-9-17 13:16
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Current situation" @1 O6 Z6 X$ Y% I9 P: r' B
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
4 D" H. z' p5 c9 b: m5 sas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
8 ?1 y0 L6 w; C; h5 `impose liquidation values.
3 Y5 n1 o8 _; L. R! Y8 z( u In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In9 H8 T$ A/ j. _9 S1 [$ k$ U
August, we said a credit shutdown was unlikely – we continue to hold that view.' ?8 C3 L) X+ X/ J' l
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
n) f5 j4 e# p/ ^8 D0 o2 nscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.3 f' G4 g0 T3 e; I3 @
, n& ~7 N2 k( a( }A look at credit markets5 G' N4 X* f; d* V* O
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
( @5 j/ r- N9 q9 XSeptember. Non-financial investment grade is the new safe haven.
4 c9 ?( k2 w9 O e0 | High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%3 g4 X3 E$ c0 W% d
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1- g/ G3 X: _# g
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
3 }8 M5 x. ]8 d2 ^: @access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade% Y& h/ N8 K3 a4 [% b7 {
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are3 c$ Z3 e- U0 \" H
positive for the year-do-date, including high yield.
: R$ w) R3 i5 } Mortgages – There is no funding for new construction, but existing quality properties are having no trouble1 v8 ?. w% r c; N# m Y& @
finding financing.( h* R+ |( N. D c
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
2 k& s; l3 p, }$ _& Wwere subsequently repriced and placed. In the fall, there will be more deals.7 h3 E r8 r) V4 P. h# V- M
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and: q* x7 Q. ^& A4 g+ b
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
% i g$ v; W$ t' A m7 J" Hgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
: Z5 x9 {3 ^% H, X$ ebankruptcy, they already have debt financing in place.
! C& X9 ~, B5 U: u) k+ V: ` European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain- @2 r7 k; Z4 `' v! X
today./ b% [% o3 r" n; V' e
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
0 m3 f, D' M( X: ]emerging markets have no problem with funding. |
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