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发表于 2011-9-17 13:16
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Current situation
0 @9 b( q" z2 v8 A+ D The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long( j# H5 [- {* F% _8 U# c
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may7 x6 d1 ^+ `$ I. F4 {% m' p5 h
impose liquidation values.
& G$ p* E+ Z3 Y# {( v% h In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
7 q1 F r' [9 M6 @: R9 ZAugust, we said a credit shutdown was unlikely – we continue to hold that view.3 V( C+ K: ^/ w3 T6 u
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
' c8 _' |# s# f& ]% hscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets9 b8 `3 Y6 q! r" e/ ^- l
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in. X# j; S/ C! y- E% Z" z: @* F
September. Non-financial investment grade is the new safe haven.. j# s3 ^; s" q3 y0 Q
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%# E- B+ _! E. J: h; [9 A& d# `" U
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
: _8 J3 ?$ v2 g+ G0 ~+ f L& Bbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
- F ]' B) P1 ?! {- ^( ~1 b$ S8 `access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
- @# U. F' j" G z) vCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
+ T) ]8 d9 M" E5 S$ m. a/ spositive for the year-do-date, including high yield.7 T: }5 ? g2 F; ~) Q( W
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
' _) [3 q: _' t4 G: afinding financing.* @ a0 T' |, q4 Z3 P- E; T
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
; Q$ U6 T3 N! H$ y* f, pwere subsequently repriced and placed. In the fall, there will be more deals.
7 e# ]4 ?* x5 s Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and2 i3 u2 i' E' [+ x$ h
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
9 m: _& K) Y- s' v5 ?going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
& _5 n$ W8 ]5 f5 S- y. w6 B) ~bankruptcy, they already have debt financing in place.
Y5 E+ ~5 Y+ M) i( c l) X1 y7 f6 a European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
" f$ `6 y. U. K N, ]today.5 k% Z p [" E: \% X! y: ~
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in1 c; a* m4 g3 p2 o
emerging markets have no problem with funding. |
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