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发表于 2011-9-17 13:16
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Current situation6 u, S5 C8 I6 n3 D4 ?. ~
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long2 a) D. t/ i+ W; |' y" ?) P
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
" }% X' Q8 ]2 C. G6 B! f- J! mimpose liquidation values.0 ]1 l* @& Y& A
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In1 ~7 q- J# N0 ?7 c3 q8 g
August, we said a credit shutdown was unlikely – we continue to hold that view." F, E. ?' y3 ?- g5 E+ j
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
3 A9 u* m/ w) u( W* p" z* }* Xscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.1 ?2 Z% C @7 }$ E) e) D
# w6 k$ u7 ~4 J) KA look at credit markets
2 B$ {1 g: ]" ] Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in1 {; s {7 r' K
September. Non-financial investment grade is the new safe haven.4 ]2 a% y0 T4 s) |2 Q# U6 _* Q" X
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%1 J( w1 a# L4 H; w# D
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1* H: i: W9 ]* |1 I" m+ y! _& ]
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have% f9 _( [' A" i l
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade3 I6 j/ ?+ ^: m7 Z! n
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
1 U3 O, L! D X. }3 Dpositive for the year-do-date, including high yield.# ~ ~: x' E/ ~$ G, w
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble4 e+ v, v" l% u: y
finding financing.
2 {2 e4 ~0 `! ?$ J5 X* n( x" @ Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they3 D9 m& l. X; U2 o1 s; W& \
were subsequently repriced and placed. In the fall, there will be more deals.5 c3 c: ^; F! [) O( m" L
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and" @. `# C; W$ C3 n7 Q( e( H# H
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
1 E) x% y- ]7 A. Y# n: Tgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for$ X1 [4 s' v, Z' f. d6 z6 I
bankruptcy, they already have debt financing in place.
+ V- y2 f6 q q7 ~0 f5 F8 s European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain, B, v& }+ c3 R, G
today.
, n2 L$ V! t0 j, e* C Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
- ?" P; z" z0 T$ M6 p) y: Cemerging markets have no problem with funding. |
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