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发表于 2011-9-17 13:16
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Current situation: K6 a% j: s3 A' H
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long- }, @3 U# U1 t+ M! s
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may ~7 {( M$ q% U: c9 R# b
impose liquidation values.
& s1 T5 }, N* U) L% V In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
5 y% c' ~: j/ B5 z/ P" eAugust, we said a credit shutdown was unlikely – we continue to hold that view.
2 f* D" S5 D( ]% B* ?3 h+ v The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension) D" k. ]6 [6 {9 x+ a" t7 }
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.6 j. p9 R% {3 {8 ]5 m
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A look at credit markets4 W, A$ X% j) `: n! L2 H/ r1 k
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in- p5 F1 R, ?9 C" u& R$ p- j( k
September. Non-financial investment grade is the new safe haven.6 ]# K+ z, D3 \
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%8 c) T8 U" n# k6 S% I% ?
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
/ n5 w/ a0 E+ ^billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
- q, G$ m( `9 O( ?$ Gaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
, [) T. _) z9 F2 O9 U+ D ^. z7 OCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are, z4 \# Z6 Y0 u. V0 @
positive for the year-do-date, including high yield." X0 D1 Q" u, b& E$ z& y
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
3 P+ G I: }0 |+ C+ ^% _( Z$ xfinding financing.( M( {% E" e0 r5 S; y
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
7 Z% c. U4 c0 a9 K( E1 w6 Uwere subsequently repriced and placed. In the fall, there will be more deals.0 l0 U) a* T, }
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and. {, p" M: s1 c$ u+ E6 c* I
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
5 U# _( W0 x) m5 ?7 Rgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for! J N# D- C1 @& a; \/ j) [
bankruptcy, they already have debt financing in place.
5 b$ k4 b6 p6 h5 u* c European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain+ a( M3 d8 }) V* R7 T3 u
today.. S! A2 @: c# Q" G5 ] g
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in" r/ O6 P2 b0 k5 y: A
emerging markets have no problem with funding. |
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