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发表于 2011-9-17 13:16
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Current situation3 s0 m7 Q. Y; p `9 w- j
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long0 b' y8 z2 @& M8 }5 A# s7 W8 d
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may- U* d/ D# i3 B# F" R5 K# }4 Q
impose liquidation values.* {& H+ ^- M, e7 ?9 O- ?3 h( w5 R
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
; ]3 T D& P8 v8 T+ E. ?August, we said a credit shutdown was unlikely – we continue to hold that view.2 j( `# n5 |; i! N7 d
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension* j: o' i9 G6 C# t1 S p: b/ T
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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$ [$ P$ e: V. z d) w) Q! FA look at credit markets6 C, W% W) o9 ]) |" |9 J5 a' L
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in$ @* j8 M; ?! a6 p
September. Non-financial investment grade is the new safe haven.
1 p+ T4 c/ t z High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
5 \( X0 n; @& s5 N& r j1 Zthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1# f1 S- @% i% c, X
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
1 j- g7 m& Z' y4 H+ G/ iaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade, C" B8 K) h. ^5 x
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
1 ?9 \6 p3 o8 L$ j) {positive for the year-do-date, including high yield.6 w: j& e- z" {( @" H* P
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
3 A/ A% ~+ o+ w2 ]+ {2 gfinding financing.
/ k# K( }# i6 [5 b' W6 f) l Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they. \7 ~( A, s" s! s6 O
were subsequently repriced and placed. In the fall, there will be more deals.
3 s. M2 R; W- r$ S+ ^1 D& n Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and9 Q0 [: u$ y) p A) ]& G
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were$ R, R) A0 I" v" P% T4 W3 v2 F
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
! ?. E0 P; |: k. X; x" J, Lbankruptcy, they already have debt financing in place.
' e" I# g' E5 O3 q European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain1 n6 f" g1 \+ H5 o; O8 M; K6 q I
today.
( H' l( U3 M7 F" x! C/ Y2 n8 t Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
* W5 U2 o, T/ zemerging markets have no problem with funding. |
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