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发表于 2011-9-17 13:16
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Current situation+ E- ?! n+ k: ?2 X
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
6 C. o) \5 J( E# J8 p) P3 Pas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may2 Y" b8 [5 j8 c6 A4 W4 d2 Z
impose liquidation values.
# v( z C2 F6 d In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In+ `9 y$ d& j: L/ m k) b
August, we said a credit shutdown was unlikely – we continue to hold that view.7 U: E. A: U# s# _6 _( r; n; Z
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension* D& U6 n% _+ M
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets
$ Y, p0 l( {! g Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
& Y! L' Y h& v0 m1 D7 gSeptember. Non-financial investment grade is the new safe haven., F7 P/ M* W8 m" Q
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
' S) [' w5 C! ^then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
: Q% k+ [" g) ?3 \0 m2 ebillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have# f6 k6 z1 _. M+ e- W B
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade. V+ p! o1 [" D+ F9 ~7 O% L9 X
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
# }# k% [! y( @positive for the year-do-date, including high yield.$ g( ^: ^' r# Y
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
* Q- x) \& |+ G/ U, \finding financing.
/ g5 }0 u5 [, H7 d7 F/ O Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
+ V: R# |. u. y5 J# z8 f8 l2 hwere subsequently repriced and placed. In the fall, there will be more deals.7 |# r+ p9 l6 C: l3 V" X% N0 L
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and# O) J, c8 e% O+ `2 z8 g
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
* h4 P; u( e9 L* ~! Bgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
: V- m0 h3 V6 wbankruptcy, they already have debt financing in place." m1 l; i/ A I4 _+ C
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
& E ~$ o( w6 O: z& xtoday.
( N" ^/ ?5 c- p4 m7 E$ }! @4 A1 U Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
3 h7 u% {) C) w& zemerging markets have no problem with funding. |
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