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发表于 2011-9-17 13:16
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Current situation3 K6 { U2 y) Y% p- Z) R
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long4 r' v# H5 I7 U# }! a
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may6 S' B0 C& J$ f& I$ n5 z+ f
impose liquidation values.5 G# b1 u. z. ?+ e
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
% S7 t j& x* ]& {; `$ l, t9 ZAugust, we said a credit shutdown was unlikely – we continue to hold that view.$ G9 f/ i4 k, F1 l% i
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
# g/ f! F9 H1 H$ j9 fscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.0 e! [( j8 M2 R& x' z4 j2 u
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A look at credit markets7 `6 i5 u; k9 K: p- `
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in! d$ F4 {: P* r. E9 r
September. Non-financial investment grade is the new safe haven.) \0 _$ Q% R( w. K. J" C7 z
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
7 B( j" P+ N4 e7 ethen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $15 U3 v5 L0 K2 |& |# j0 z1 G" \
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have! j1 A0 } [5 B4 J4 ^& p' J1 z
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade% |# T- |. Y/ j% l- `6 o9 F6 s. ]
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are' Y% D0 U" _0 k5 w: {5 E9 U$ O
positive for the year-do-date, including high yield.
5 Y6 d+ o4 C$ P1 f Mortgages – There is no funding for new construction, but existing quality properties are having no trouble7 l+ `" u3 N7 m. U- I
finding financing.5 B3 N- S& b% m9 e3 I; d1 z
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they: }: w- W q' P; |3 u
were subsequently repriced and placed. In the fall, there will be more deals.
0 |2 ]3 k5 l! L2 F Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and. j4 n% o; {( a, f2 {
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
/ a& s* \, N2 h3 S, [going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
# {8 H2 i- V! T& Z4 u% Rbankruptcy, they already have debt financing in place.+ V; b5 ~4 k4 p3 ^, v3 {8 E/ F
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain7 \) J. F1 Q" z, N/ j$ Q, Q5 x( j3 n
today.
' U6 }% N! b& a( o Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in% {6 j" H$ E4 Y( S# m
emerging markets have no problem with funding. |
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