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发表于 2011-9-17 13:16
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Current situation# E1 p% e, M$ e% ~
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
: ]1 @7 j! N$ h) N \/ y+ Jas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
+ z" n' g9 K) J3 V: oimpose liquidation values., M& B5 C/ b2 z' H" e5 J$ g1 T7 V
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In) n# G# S- q; N/ k& ]. G3 X( X
August, we said a credit shutdown was unlikely – we continue to hold that view.: t @% M6 R; L' D" T: k; w* B6 b
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension- B$ G- U3 c2 }0 |
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.$ N5 B: m) q |1 S# n5 x8 y
8 V" d- n' \1 `, }- O3 p* ZA look at credit markets
/ K0 q: W w6 N Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
1 O, B" e% d# ?September. Non-financial investment grade is the new safe haven.1 i! ?, n/ t/ y+ l9 \7 g0 s- X
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%: f L# X8 G7 \3 e( f' v0 k! l' Y+ F
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
1 X2 t' m3 j; D1 Mbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have* E9 g+ B1 W1 p# z
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
- M% R1 e: a9 e' e7 l5 MCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are, w% |: [6 E4 l _2 b6 R6 N% o
positive for the year-do-date, including high yield.
4 t6 V# H* J Q Mortgages – There is no funding for new construction, but existing quality properties are having no trouble. X9 h) Y2 h! }, @
finding financing.
, X( {$ Q1 O) z Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
h. R/ k/ `+ c& |7 \* d- Qwere subsequently repriced and placed. In the fall, there will be more deals.1 s. z0 k7 w% @/ E w0 t
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and7 F2 ~- l9 K4 k* ]( R! z% }7 ~
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were7 S. g! t" p3 X, Z& Z$ W& E% j
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
- x0 k6 _8 G/ y0 V5 Ybankruptcy, they already have debt financing in place.
" T- X/ Z- c3 X% M: G& X European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain. ]& n- p; N" I- {; T
today.
2 \7 P, B0 _$ u- V% N Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in: ]9 h# f/ G. h( X2 [
emerging markets have no problem with funding. |
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