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发表于 2011-9-17 13:16
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Current situation; Z; G* J7 t r, Q
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long, z) S: M4 K6 ~9 g! a! p4 R9 d
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
; W1 @/ ~3 k. simpose liquidation values." J" [* Z) Z& c$ p9 j
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In( q o5 {1 W6 ~
August, we said a credit shutdown was unlikely – we continue to hold that view.7 J( a$ v0 V& p' b5 u
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
. R8 y8 O( @+ {' sscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
; q3 A+ i1 W) d3 F, R5 ^7 B
" t" P+ G! ~0 Q+ W9 S. i' u8 K; J1 }& ^A look at credit markets6 t0 T: z4 k: c5 H
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in3 n5 @) W0 z# V* C
September. Non-financial investment grade is the new safe haven.
' Q! L: X: ^/ |! K3 }' q High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
' E! F( T+ Y8 U! d! C% V& o5 Dthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
9 G! G/ p- [- k& z# l. E, z# @' W; {- vbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have3 I# C; `. g( V$ t, V
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
# L" p3 {- h9 f! Z0 MCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are" I1 Z8 ]& M, C/ ~ H3 a
positive for the year-do-date, including high yield.* }* Z0 K+ H' ?3 B! l- a, {
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
6 Y2 s& s* |0 Mfinding financing.( L$ C0 \# n( i! B$ Q+ e
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
- E6 ]# ^) {! T4 _0 owere subsequently repriced and placed. In the fall, there will be more deals.( \: I" U, U4 Q; N2 b+ Q- Y
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and3 y7 `/ o" U8 p
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were( @& i' D( l7 K3 A* w, |$ k$ L& B
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for) k. E1 K" A9 ]- x
bankruptcy, they already have debt financing in place.
: G2 \# `9 `6 r2 }0 o9 E5 E European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain2 ~" m6 `9 j, Y B3 [: p7 X
today.7 H$ \) _) f/ @3 n. t# y3 D: Q( y- ^
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
2 Y* c: {$ v# Semerging markets have no problem with funding. |
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