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发表于 2011-9-17 13:16
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Current situation& w- G; g& Z8 U e, i% R! D4 c* W
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
2 E5 z; F0 e% B5 Vas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may- [! f( d) g" T) g% b3 ^
impose liquidation values.& r; ~. ^1 S3 q2 c& B! ^
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
, ? ~ E% _! c" i& A- ]August, we said a credit shutdown was unlikely – we continue to hold that view.
" x* y0 m4 t0 X7 g& }5 g The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension, M4 {. [% K3 c; ?" `
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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$ G8 W3 D2 y! e# @A look at credit markets
: |5 q" ]& \- N; F+ X Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
8 j9 m5 Y7 P4 E6 q, |3 z' ~September. Non-financial investment grade is the new safe haven.8 u" e' v. @" Z& |$ T! n4 L1 h
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
8 n) E3 y& a) }then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
3 y( R/ D; c Fbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have. M7 M3 z( d, _- \ R' {* H
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
, N0 Z+ G7 x8 L: [* u4 v: `CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
% r' _ `/ m4 c6 Tpositive for the year-do-date, including high yield.
. M# v; y# a: a( {) C# l: t" k Mortgages – There is no funding for new construction, but existing quality properties are having no trouble" ~" Z* p. `7 U; U2 U+ T X
finding financing.* S$ ]" ?: O. e5 h+ h ^$ @
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they% j8 M/ a/ x V6 a+ @
were subsequently repriced and placed. In the fall, there will be more deals.3 x' F: d- Q/ Y; I2 _& u
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and2 G9 J0 Z- ?7 @1 M
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were! u" r5 L& g8 X) \
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
5 t/ W0 N# X |/ G2 {( C3 n3 Vbankruptcy, they already have debt financing in place.
! y3 Q) b! y/ D( }0 M European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
: W2 n( k0 Q+ D5 D5 K2 Dtoday.& j0 x3 W# N3 X, Z6 D) \
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in# n, r' f: Y: z' X% f
emerging markets have no problem with funding. |
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