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发表于 2011-9-17 13:16
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Current situation" s1 f$ l* Q/ [! c
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
% j& j; M/ s/ V. c& ^! Kas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may5 j3 H) V* O6 d8 U2 p
impose liquidation values.
; ^0 y3 C7 }- w* d. p In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
( U: w3 J& Z) `; e2 V+ V$ r0 L ]August, we said a credit shutdown was unlikely – we continue to hold that view.# P& }' g0 Z0 B* W- o
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
- `2 a; F( {' @scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets( }. F# w W, f9 h. i5 I' c/ M
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in7 ~! |$ Y/ F: I3 h& E$ r) w+ t! A. V
September. Non-financial investment grade is the new safe haven.: ?6 [0 s2 M6 T
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%6 j4 b7 r/ } R2 F- S
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1+ e, N2 v: ^4 ]
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have; R% K0 }& t7 G* R, W
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
. |5 N1 r! d/ n1 N. TCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are/ n# l* U4 a. L! z% m# J$ M% f
positive for the year-do-date, including high yield.: L1 ?: f' K( {4 p" J9 H, Y
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble/ @ g3 k# n. U2 u& G( d* @, A
finding financing.# V8 J; Q7 W" V: Z% f
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they6 d: H* D" y% J
were subsequently repriced and placed. In the fall, there will be more deals.
* Q' s' @- W& d3 i# a Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
% z8 M: \$ ]6 R# [is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were3 l! R+ d3 s1 Q4 T, H& p
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for3 {0 [! S# j$ E: P1 B7 `
bankruptcy, they already have debt financing in place.
1 e$ G- A, ^1 p European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain# T3 m9 _# _3 L7 Y
today.
$ o! B5 x! C& j2 {$ u Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
) g n; W8 n4 Bemerging markets have no problem with funding. |
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