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发表于 2011-9-17 13:16
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Current situation8 D7 s' a1 j+ E0 y$ @9 o
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long8 u* X) O8 M# P( k5 L. L' p1 `
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
7 P6 L( N; r. {8 vimpose liquidation values.% W M P3 }8 Q3 F# A8 C
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
; Y: X7 }" E+ uAugust, we said a credit shutdown was unlikely – we continue to hold that view.+ e2 S* V3 h. s o
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
# I& h2 K1 W) }( u( \3 Z# dscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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" J% ~4 P4 v9 w) Z" UA look at credit markets
% n: G% L, J2 x& S( f Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
' O3 Y; _8 J2 [: ~September. Non-financial investment grade is the new safe haven.9 N( D: [5 U5 I. u5 q
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%) ?1 a, I- _: Q* D# T" }9 O
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1 z) f6 ~9 o1 A4 Z7 f( y
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
5 a; V' r- y% f! F, L, G, Daccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade6 U; P6 F0 W& H7 [' N
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are) o7 z' Y4 v7 X: d
positive for the year-do-date, including high yield." N" b A( ~, o! s! V) R# N
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
# A- J x' s- s0 J. e. p5 _6 Mfinding financing.
* z8 O; s& d0 H0 q/ b. L2 R$ Z. ]+ J- } Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
) p( H7 L+ t! r- J0 Gwere subsequently repriced and placed. In the fall, there will be more deals.4 F! |1 K9 _# R9 ~
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and2 p% G ?) E4 K4 m) S) g, M3 l V
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were, _1 d2 p2 I2 }4 w+ ^4 B8 O9 P+ v* E
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
0 d- Y( g0 S" \! V7 e0 P6 Nbankruptcy, they already have debt financing in place.8 P; P$ k6 P5 _
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain4 J1 B3 z& g# D/ \" n8 A
today.
, H3 a6 A+ E9 T6 q8 H Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in2 y- k" F" G5 O' c" t0 K8 k7 x
emerging markets have no problem with funding. |
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