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发表于 2011-9-17 13:16
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Current situation! K, ~ C: `" j* ^1 _3 Q! X
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
; Z, F1 [, w; o. |; mas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may7 X3 V1 k9 y- n* `
impose liquidation values.
6 v! ^% Y; |* E In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In4 G J& K9 W, q. K) V
August, we said a credit shutdown was unlikely – we continue to hold that view.
* d+ k0 V3 B* H: A. u: Q" l$ u The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension% W8 t$ c3 X2 y
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.. ?/ I2 H9 K( O( @
# |4 ?+ c, p" X0 D% _, L6 z- @A look at credit markets" `' @7 Y2 J+ X+ |8 p8 F: c
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in$ q) v0 f' M# {: r
September. Non-financial investment grade is the new safe haven.
2 x/ H, _5 o7 R3 R/ g+ Y High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%' `! k+ e7 c/ O) M( ^
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1# g' V6 f! {1 O* o! d
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
0 b# _/ I+ ?3 G9 \5 X& oaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade9 ?5 l" A5 p' q1 \
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
& Y* H5 D- Z8 Hpositive for the year-do-date, including high yield.
) s: f' C: b; m( O Mortgages – There is no funding for new construction, but existing quality properties are having no trouble y8 |/ d( s# d, z0 F8 F
finding financing.! E G8 a0 n, D& |
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they \. N; r b5 j: n
were subsequently repriced and placed. In the fall, there will be more deals.
; u6 ], ~, q( J b1 u5 |9 V Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
+ q5 L5 R/ A; A8 z5 @7 Jis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were. Q! J/ I: ~" R, A. g
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
# x& ]! x; K% }6 P5 S" Kbankruptcy, they already have debt financing in place.
9 l- F1 u/ q. P' J European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain% z$ F+ o1 u2 l+ G
today.
P3 e' |* ]; @* S1 g7 Q Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
/ W7 X5 Y7 R; A* zemerging markets have no problem with funding. |
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