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发表于 2011-9-17 13:16
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Current situation. L: f6 l6 M9 Z U. {* g
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
( e3 U8 O* \* J' Xas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
' R5 n. V! u b; T4 U6 y. g# R# Gimpose liquidation values.
Y( {5 \4 Z3 l6 ]4 o8 ^ In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
5 }2 J; U6 A/ ~$ H* X+ C4 b* `August, we said a credit shutdown was unlikely – we continue to hold that view.: G" V0 w- z- M6 S9 q# o# y d
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension$ m( {+ x' f' p6 E
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets
# e# d" K' w5 J) o+ h- Y8 ]& c, o7 o Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
5 c( a- L D# D7 @% hSeptember. Non-financial investment grade is the new safe haven.& R/ ~' i0 R. r% N6 j( D- c
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
' E1 ?% `6 d4 R% U, w: E- wthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1; G0 j6 M3 j: C A: E$ |1 ]6 R" ~
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have3 Y5 Q8 g' F3 q8 l+ W
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
9 C2 G6 a# S" s, jCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
$ [. j- i! q0 \8 T1 }7 T3 a) y) Wpositive for the year-do-date, including high yield.
3 G. |5 t: ]! D, G* o$ b- [ Mortgages – There is no funding for new construction, but existing quality properties are having no trouble: q$ w8 n- f5 G
finding financing.
6 e6 I( O$ w9 @4 ?7 P Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they, |% v. u; s, s) @/ X
were subsequently repriced and placed. In the fall, there will be more deals.3 y" `/ M8 Y K q* p1 w2 f: a3 w" S) r
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
) R% e0 B$ @- p2 G" v2 N8 Uis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
! k% R7 _* R1 F; Ygoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for. }+ b7 z, D, ]! r9 M
bankruptcy, they already have debt financing in place.8 n/ W7 H' h5 @8 w @; A
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
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 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
/ S8 d; h7 a" t7 iemerging markets have no problem with funding. |
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