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发表于 2011-9-17 13:16
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Current situation2 g/ o4 d5 F( s# p1 k* Q" x
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long9 [. M! Q6 F6 f. {2 F, b
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
5 P% G/ t: ^1 b; D( c. qimpose liquidation values.' ]/ }) H* U/ i% t: V& p
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
6 ]% f6 @3 Z8 N4 [August, we said a credit shutdown was unlikely – we continue to hold that view.% u6 S! a" N/ s. |3 `
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
# U7 ^6 @+ o' {scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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, l4 ]# w+ M, ?) x r" p2 ~5 e. CA look at credit markets' r: p) j) _+ |9 G) E" Q
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in* m. ^3 Q w8 n
September. Non-financial investment grade is the new safe haven.+ i, u) T5 y: J( j$ t6 a
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
" S* C! Q- R" k! @9 a; X) j' {! wthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $17 H# F1 j3 X6 }! [4 h
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
+ Z$ F) Y1 g- v" u4 S: ~access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
: _! a% c9 `8 M! A' I7 vCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are3 [/ G1 {) Y) M* j N u$ k3 G( g
positive for the year-do-date, including high yield.
& F0 W" X; H9 g6 r- S$ Q M6 }# s Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
, q4 J% t* i% F0 z {4 @: a' k1 ]finding financing., h0 z) W. I0 `& T3 I7 C& d* {
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they) x& G! ^! q. N
were subsequently repriced and placed. In the fall, there will be more deals.1 E9 o4 T& H$ O5 k+ P. ?
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and1 L7 E1 o" C2 F/ m0 Y% [. S7 u* t& V
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were4 i: X `( l K5 m( w
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
, y3 X4 n* B$ A% Qbankruptcy, they already have debt financing in place.
$ D/ M5 Y& t0 b7 r6 I. @. d European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
5 O/ u \1 V d2 c( v- Atoday.4 Q7 P' J1 y# e) @. ]" c% }! Z. ^5 Y
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in) H+ o4 l: p' v. e- X/ `# S
emerging markets have no problem with funding. |
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