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发表于 2011-9-17 13:16
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Current situation
( D, A# O5 p6 Z The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
! u5 v0 z l3 d( f/ \/ ?/ G" Sas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
: k p* U- s. w* ~# C- U9 _$ nimpose liquidation values.4 Z' G3 A) U9 R' {( ^0 s Y7 e
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In9 \% S5 ~, b; d5 K! k- y
August, we said a credit shutdown was unlikely – we continue to hold that view.
$ |! j* e! B, L The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension: I# @$ @9 H8 B" s
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.5 r; T- ?) J) e, ^# D
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A look at credit markets
, m! q$ k# u& r/ y' X; o; m$ ] Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in2 I! l6 ~/ F7 h- p! q1 _
September. Non-financial investment grade is the new safe haven.& b" Y5 u7 h8 B7 C$ n2 o u% E
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%. o* R4 X( d! i7 C
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1' L0 ]1 @' `+ R" r2 w3 P8 Z
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have6 n- D2 G& L- f( b
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
: p. t: Z( b: JCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are7 _7 k$ j" \0 X
positive for the year-do-date, including high yield.7 n1 H+ x+ p- R6 i1 z
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble+ H2 b3 T, s! y& M2 V' a
finding financing.
2 ?" n; ^* U# I8 X" x Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
8 x6 k/ y, _" g# B6 K$ Z1 rwere subsequently repriced and placed. In the fall, there will be more deals.
6 ^# l; ^9 t7 f! C Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and4 F4 v6 H t4 e5 _1 m2 }
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were! h8 b0 `' j& ?( u
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
3 q! x5 Z a: {! ?: }bankruptcy, they already have debt financing in place.
_7 a: P- l- f. d7 C7 H' @ European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain2 ?, N( c" ^0 W% _+ V- ]
today.
. V; ^; O6 q6 j Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
$ Y* U& i/ X0 t3 W. O- V$ femerging markets have no problem with funding. |
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