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发表于 2011-9-17 13:16
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Current situation/ l* Y i8 u4 [ R2 T9 m
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
5 G: [# `5 W# W9 l3 c" ~. F; x4 U0 ias funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may6 f' J+ }' B0 i8 x: j6 ?
impose liquidation values.
9 p6 C! X6 h% r }6 R5 ^ In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In0 G# M" ^9 g5 [* V. Z
August, we said a credit shutdown was unlikely – we continue to hold that view.$ A N8 Z; S+ j2 p/ A/ |5 z% a6 l
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension, R/ b0 ~; \! q; o' d
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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; L6 z9 q; Z! v$ ?A look at credit markets9 ]( Y# V9 o6 I
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
- ]+ W5 H# Y: y; d' N2 k1 R. WSeptember. Non-financial investment grade is the new safe haven. V$ s; K. d7 V5 [- t' P
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%5 J; g5 k+ k' b% g
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1% A2 y6 d) K0 A0 L3 J
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
$ \; z( u1 _4 A9 x$ `5 e8 u# I+ _% Taccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade0 W$ h* L6 z6 v; I, Y
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are! m" ?4 I4 {7 h4 E8 ^
positive for the year-do-date, including high yield.3 M) P' u9 |2 A8 [0 Z0 z
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
t4 t" F% H9 mfinding financing.7 v4 C+ ^+ E7 T( O% Y
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they6 h- n0 Y) e* K, O1 Y
were subsequently repriced and placed. In the fall, there will be more deals.' R1 M( I7 l8 D4 |; ^2 G4 D* T
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
1 `5 ^* U0 M4 W Fis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
0 d. K2 D, L# z; dgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for, o5 R5 L% z0 k5 t: ^9 k1 S" d- H. i
bankruptcy, they already have debt financing in place.) y, J. P: s) W6 s- X4 b
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
/ l2 y# w. S/ Qtoday.
& s- B; h0 q. n. K3 a Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in6 A, K' Q& X* l
emerging markets have no problem with funding. |
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