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发表于 2011-9-17 13:16
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Current situation3 s6 X# V7 c2 [3 i% N. Y% m4 }" h
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
$ W7 {, n2 O3 r, W! E% ~0 s2 uas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
# b/ J& f+ C' S+ O! T+ timpose liquidation values.. `! V7 s+ u* {
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In( N% g9 C, `2 N8 L! h- @+ ]2 \4 H
August, we said a credit shutdown was unlikely – we continue to hold that view.
. R$ w( _3 E8 t4 r& d4 \2 g9 s The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension. K# {! Z; \: S( ]6 d/ q
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets. l1 m( d9 O7 Z+ r' i* Z Z
( m7 ]1 z! G* O% cA look at credit markets0 f c6 k! F: g
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
( L# n. C+ v: h( aSeptember. Non-financial investment grade is the new safe haven.2 I* ~+ w; Y9 l$ K5 h( d& k/ Q) I4 L7 X
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
, W! u2 A; ^" ~+ mthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1- A- x* o# A0 V: h) Y8 M1 T0 I+ f
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
5 v- ?, W5 r- Y" L8 I& k# Waccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade+ q! l% Q- `, n A2 O
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
! f) y; Q% m, p5 g; U0 c' z; Kpositive for the year-do-date, including high yield.) W S/ r# N% g+ ~4 D: {
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
% Z" A7 x; Z O3 mfinding financing.
1 ?6 z# a% z5 e7 h1 o Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
) O* @' r# X* q9 _: Dwere subsequently repriced and placed. In the fall, there will be more deals.
" Y8 d& w* v H+ p# A1 i0 n7 E0 X Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and8 o+ n! o' c6 Y; \# E$ [
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
# H; G# ]% L/ Z# ]+ Ogoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
( z) D6 J- |: a1 O, k& M! g( zbankruptcy, they already have debt financing in place.
/ ~& D! b8 b3 y% t European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
6 p+ o% @" g' |+ dtoday.- h# L$ F! S# Y& o4 V% w
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
% p" } }) {9 semerging markets have no problem with funding. |
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