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发表于 2011-9-17 13:16
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Current situation
3 S1 P e/ D7 \9 F1 q, | The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long" y; O' M$ ?5 q
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
& g" B& k% P. O) B4 O2 ?- Simpose liquidation values.5 @8 L& f! q( F0 r' n
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In6 Q U3 }8 b6 N5 K. P# l
August, we said a credit shutdown was unlikely – we continue to hold that view.
% R0 N7 j0 m4 v0 Q$ ^7 C0 W The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension2 f: u. T* _/ O
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.2 r; ?! p! s: M7 y1 E- d( O3 @
! _9 n& l6 E9 y# _A look at credit markets6 F( J: u# M. B- f
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
9 t- y6 P* W9 W) s6 xSeptember. Non-financial investment grade is the new safe haven.7 Y+ _- b+ m$ A# }+ v$ k3 O
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
4 B: S5 `' T( ythen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
) Q- _2 g/ v/ D( h% Lbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have( Q8 |$ |/ s l2 I8 Y5 J! d
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
3 b+ N& r- k* {: m( b4 d" G7 C! JCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are) p" _2 p. C* o$ ]2 E" d3 v0 K
positive for the year-do-date, including high yield.
* @( Q9 L* o7 h( R Mortgages – There is no funding for new construction, but existing quality properties are having no trouble0 M5 @& N! B1 r1 Z5 I7 Q
finding financing.
7 M: H/ u* `6 k' } Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they K* v# `% O* F7 X& Z
were subsequently repriced and placed. In the fall, there will be more deals.
F& q* J$ a# U. _! ^$ A. y% `) n Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and* W' J/ Q) t* r/ R! W1 _
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
$ p$ F7 w1 i3 L3 mgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
5 c2 M2 ~: F: ]% Fbankruptcy, they already have debt financing in place. p0 G/ E* \5 s! G
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
# k/ O% J" J: V' ]today.; m7 i+ f! M+ @) y9 W+ v* O. E
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
5 J n& P+ L. b2 r( k9 Gemerging markets have no problem with funding. |
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