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发表于 2011-9-17 13:16
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Current situation/ _8 ]9 o6 s" M7 I
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
" S( v+ b% m( ?% x% Q. M7 Gas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may' U3 e5 P/ X- a8 s2 R+ U% {
impose liquidation values.
9 N& i! W8 ^: Q! c8 ]% \# u$ C" _ In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
8 f+ }' U$ t4 n+ n1 F4 SAugust, we said a credit shutdown was unlikely – we continue to hold that view.* t% c1 ?0 Q0 d! q" @! r7 A& ]
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
9 g X3 J: M+ d bscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets3 c) o& q, n/ \% Y v
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in, s; S( {& O! K6 a# ~
September. Non-financial investment grade is the new safe haven.
1 U3 ]4 K! s" \: y High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
) h' F+ G/ K: S# L. Othen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $14 Y6 x9 Y7 `1 x- [4 L
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have" I- ^# u$ N; z" _/ ~$ D
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
2 F/ ~; N) Q! O6 BCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are. [4 h" V1 D) X$ {; C
positive for the year-do-date, including high yield.
1 R1 j# d/ q) w! K6 k4 x Mortgages – There is no funding for new construction, but existing quality properties are having no trouble% O' X) H, x# I& D. t% S7 i/ N1 D
finding financing.
6 U$ _, X! u0 C, W Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
: e" e5 Q) s* n9 a% zwere subsequently repriced and placed. In the fall, there will be more deals.
+ Y2 R. w7 f3 G! w5 i Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and8 F% W1 p, R4 y
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were- j" [* x" Y4 }. z* P
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
& N9 I( w* x6 ~8 dbankruptcy, they already have debt financing in place.
! U( E' n" r! a! F8 O" [2 J European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain& ~, h, R: H! S) e+ C6 j' v
today.
% Z) x u' K0 i/ R& X Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
, p) _+ o0 p4 E: W# W* L$ O/ m: O3 Memerging markets have no problem with funding. |
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