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发表于 2011-9-17 13:16
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Current situation
& a6 g1 u2 X6 N5 W The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
8 R) V( X) Q- ?8 e# }0 Jas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
2 z2 @3 F& F; c6 Z9 E& d$ gimpose liquidation values.6 M- t0 ]. O7 {
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
1 P, l9 `2 H1 s- N, ^& z2 W# y* B( XAugust, we said a credit shutdown was unlikely – we continue to hold that view.& m2 G& V; r# P$ T, C
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
+ q4 {: i& ?" W+ D3 V: O9 yscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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& p6 ]: z1 O1 [+ W2 p- u6 Q6 k+ N( dA look at credit markets
. z0 K9 H4 a) C* z# n Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in1 I. F- g- _4 _- J& _8 n. i
September. Non-financial investment grade is the new safe haven.# I: T0 t8 i& e+ D4 @
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%& _' H/ [4 _ D9 ~. f4 F
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
0 `* C% V; S0 _billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
& `! ~& @2 T' [( c% haccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
6 a9 ^# x' H( e: L6 U- }CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
$ }; I$ u, s& ^# Kpositive for the year-do-date, including high yield.+ @9 C1 A* X. S& W' x
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
, @8 t/ R$ D6 v8 Kfinding financing.3 I) |7 \! S2 o. ]* q/ d0 x
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
) @0 S( G$ [+ R( y/ Hwere subsequently repriced and placed. In the fall, there will be more deals.
7 B# ^7 d2 Y# M; R4 l; U) v Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and. M- ?2 K H3 s" Y4 o* U+ w
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
7 p; J. u7 @2 a5 lgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
! h; U3 F2 l* ?1 e8 w$ _bankruptcy, they already have debt financing in place.- t5 X; L5 P: B y
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
+ }( M. |6 [* C% E6 ?today.
, u" Q7 p* a: g) l: M3 U Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in4 v7 j5 k3 h* r% k3 M$ q5 W, ]0 }
emerging markets have no problem with funding. |
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