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发表于 2011-9-17 13:16
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Current situation0 Z& m+ W) O- V5 Y6 M
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
9 ~6 k3 Z$ u$ R$ e8 B' |$ j$ [as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
# X2 u( l4 a9 K% ]0 j4 \- h0 Mimpose liquidation values.. B/ @4 K$ e: p% v. a
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
7 h8 r" g8 J+ j) T; L8 v) R+ zAugust, we said a credit shutdown was unlikely – we continue to hold that view.
) k @6 C# T1 U# s+ f `; p2 M# X3 | The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension# S2 Q E- }; ^, X7 X2 ?. a% `
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets
: f8 k- p+ a5 ]7 m! A% Y* I Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
& }( a3 M+ g! ]! P& PSeptember. Non-financial investment grade is the new safe haven.
4 `$ p1 }8 _0 |) F5 f! R9 W High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%$ k$ c0 m" F+ O
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $11 W# o+ A% q4 R5 ^
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have: R$ u/ H5 K3 A5 n' `0 L
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade" Z: G, z$ x# ~( L; L7 i9 m
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
4 s/ f' T5 C& a% n( x# @6 Apositive for the year-do-date, including high yield.
p' v O/ a% F8 `. U Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
6 c' x7 d& z( Zfinding financing.( R) {1 K2 b* o% D: v* }
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they+ a% n6 C8 E3 A& c% l" s
were subsequently repriced and placed. In the fall, there will be more deals.% W- z8 f! L) o2 ^0 {
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and! ], ~6 S" `5 T# A6 I2 P$ O4 X
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
5 n' b9 X3 @1 y: o6 |5 kgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for" q3 m" q# ~$ ~+ N: c9 `
bankruptcy, they already have debt financing in place.
6 z( l. U9 `) W- A+ |8 N: m9 p1 M European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
3 {$ A) a P0 B. Vtoday.
7 W& w( z2 ?7 j( |6 c Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
3 Y1 v; c6 A2 N: ~7 u, I2 jemerging markets have no problem with funding. |
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