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发表于 2011-9-17 13:16
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Current situation5 `, D1 T6 L0 e3 s9 E4 p5 z9 D1 O
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long2 B0 |7 Y, Z5 |8 n& r6 k. X4 W. Q
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may" }1 `" F! c6 P1 N9 @
impose liquidation values.! ^) S0 N; ?, G9 d7 r9 [+ r! u
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
# t0 I: O. Z( e; p7 R0 mAugust, we said a credit shutdown was unlikely – we continue to hold that view.
' P& j/ ^6 L: c& ~1 X The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
5 T- s3 `7 A& Sscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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! K1 c# W7 L' d" m `: nA look at credit markets
: ^9 X2 d1 ^6 B% x" [: n' e# o% R: i+ A Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
# u; M8 z+ k ~September. Non-financial investment grade is the new safe haven.! R/ A+ ~8 } K
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%9 E$ e& M0 y7 n7 |- N- q+ b
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
: F; y) Z8 \0 L, {6 T$ C; P/ _8 Sbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have. o' l2 b; F6 d3 K6 t
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade) Y8 V& ?1 n x) v8 ], t5 X I& r
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
& m6 Z* P4 O3 b5 U) N0 r$ @- zpositive for the year-do-date, including high yield.* X' q7 L+ u7 i8 z- T; q
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
5 e6 W2 a7 F0 y3 o5 o, `2 i( g, L; I! Vfinding financing.0 A) N5 ^+ S. Z) c& s; I
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they" x! c( \' G( Q/ a# m% C
were subsequently repriced and placed. In the fall, there will be more deals.4 w2 c% o2 |; z
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
9 Z! b" c1 Z! `& o; n# K- lis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
# ]( j0 K* e6 g5 Q4 U9 d9 W7 Jgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
3 ?+ G1 h0 X( {- Ibankruptcy, they already have debt financing in place.! {: v& h, j) e. p" e1 O' K& S# D
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
* R0 u% B8 R& a/ B3 Utoday.
6 l( M6 S4 C I: O; X" P! B Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
) L' @4 \5 g9 pemerging markets have no problem with funding. |
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