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发表于 2011-9-17 13:16
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Current situation
4 z. F; [& G6 I o2 L The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
4 {& O$ J/ v; Y. C: gas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may/ n/ i/ V( ~/ S3 s Y- s' L% |. s1 ]/ _
impose liquidation values.$ L' P c( |3 r. m# p4 ^6 B0 \& ^/ }
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
* d# V3 l; Z! `, B7 YAugust, we said a credit shutdown was unlikely – we continue to hold that view.- b, O- {2 i1 Q4 [
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
3 ]$ G2 L& ]3 zscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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8 f, S6 z( w2 G6 uA look at credit markets
# O3 q+ W5 ^& W0 @6 l Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in' |* i0 Z- ]0 n1 o
September. Non-financial investment grade is the new safe haven.
, t m3 Z$ G" R3 c High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%8 f2 c/ I: Z$ Z" z
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1" {" j* m1 { f5 K @# ?# L
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have% {% B) Q5 I+ S' H) x
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
: B( @' B3 n! i. g# a0 {4 ~CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are$ s$ H% i9 I- ?
positive for the year-do-date, including high yield.
9 `( N) t& K* j, ?1 E* @ Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
1 H; O* d9 \- y7 X' F" n. @; C9 Lfinding financing. l$ k4 j) B. b- d7 r
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
7 k" {$ j4 x# |6 }were subsequently repriced and placed. In the fall, there will be more deals.
8 V; a2 j; `4 _2 {( I Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and+ B @$ O% `& J3 F9 Q0 V( ?
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were1 |! o$ J' ]; E" r
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
|) `6 B1 l6 f% k1 ~& d. e4 J" }bankruptcy, they already have debt financing in place.1 k) C; e" y* U8 H0 _. ]) U
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain$ D% s1 C, x0 f# a+ i/ z
today." Q( @' s! w( G2 I7 `
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in5 X _+ i# g+ x$ f: ^: J2 O
emerging markets have no problem with funding. |
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