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发表于 2011-9-17 13:16
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Current situation8 O' r% a& u' s5 o/ }
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long0 ]. J, h) Z6 F' O& L
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
9 P* K2 U" T# i! V' Cimpose liquidation values., L& V7 g7 }6 r) `4 U' E
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
5 ?0 {" ^$ u( A! g- IAugust, we said a credit shutdown was unlikely – we continue to hold that view.
+ f g9 \/ ^ Q The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension; E7 b) V. z- x# S; P) m! F
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.. s0 ?- g# {- l, X' K" H5 I9 o
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A look at credit markets' Q8 Q+ S1 O0 O
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in- n- k# H+ Q4 e! I' Z0 N
September. Non-financial investment grade is the new safe haven.
Z9 d4 X$ A! u/ t0 a High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
6 p$ t9 n9 K; y+ v8 Fthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $14 j+ [% b) i0 v4 L
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
; {: E/ F$ Q; _; s# haccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
8 X. X* u3 z+ l: ]/ pCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are4 t8 i; t4 m1 j2 Z% g u+ U
positive for the year-do-date, including high yield." e' C, E) K6 A/ L# i! ~8 v+ U
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble/ ^9 F1 B* j6 c E( ?; b
finding financing.- _( g7 ]% d; @) t
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
* r' R& h+ D n7 f3 D( S1 U( Wwere subsequently repriced and placed. In the fall, there will be more deals.# C7 k# @1 p" l$ g% u1 i
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
2 S3 l& Q& i: {4 b; S2 Qis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
6 V3 F! D. j9 s1 R- ?& xgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for! T0 T8 P' Z4 u
bankruptcy, they already have debt financing in place.+ O- i6 o' r4 m( {% n6 ?
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain5 U" G+ I8 n+ N; M& N
today.$ T( ~9 T1 x" m, Q; t# v6 a3 n
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
& L& D L: F7 V& uemerging markets have no problem with funding. |
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