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发表于 2011-9-17 13:16
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Current situation& x/ N+ Z$ X# J' h M
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long) a7 T7 J' r7 m- l$ S) I( v& L/ m
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
: g0 ~$ \. u) Y5 b uimpose liquidation values.3 g* v! w, ]3 f$ V; a1 d4 [3 Q& K
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In7 D' d8 X2 E% k" y* o6 W# F
August, we said a credit shutdown was unlikely – we continue to hold that view.9 o5 i% a) X) @# a$ ^( Y
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
9 L" H" q% X% d. H$ |# xscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.6 G \3 o- C9 @" s
7 {, r. n, Q$ f: q6 X9 a4 MA look at credit markets7 ~' g9 y( ]. w, L1 h5 y' Z
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in+ Q2 Z& y. R4 K
September. Non-financial investment grade is the new safe haven.9 C7 v2 R3 @$ x, K
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
0 L; n1 q: K' Mthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
/ r/ K A3 R5 Y& s2 u; t. M: Obillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have* |8 P: Q1 Z9 d/ A
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade+ p; Q+ Q$ Y8 V4 b; ^/ J4 y
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
l+ R+ O7 _; Apositive for the year-do-date, including high yield.9 `6 y9 e: C! Z, h3 C2 r% t
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble+ O. h8 [ N* q! M
finding financing.
; m& n0 u8 Z" ]; i2 B Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
; T$ j0 q. ?/ j/ ~8 cwere subsequently repriced and placed. In the fall, there will be more deals.
3 F1 {4 A3 j4 i7 H7 V Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and8 r5 ]' |( q% g
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
# h. x: R& @2 J: N8 [going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
. C0 {. K/ x: S1 Zbankruptcy, they already have debt financing in place.
) E* o& [# B" T' Q ? European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain9 J( f) Z5 S! Z$ u8 W
today.
2 f. a: K+ z- y! e& b0 {9 j Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
/ X1 z/ m }2 |# k' gemerging markets have no problem with funding. |
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