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发表于 2011-9-17 13:16
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Current situation: M: [' @8 M3 B) S$ I$ _
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long" D/ m, m7 T3 l- C" L6 n; s
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may" D! m5 ~2 }5 n) q
impose liquidation values.2 B8 o, d) @/ F# B* w3 ]
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
4 F$ [: e- x2 r) q$ wAugust, we said a credit shutdown was unlikely – we continue to hold that view.+ k. r1 T4 |3 [9 H! K7 r( C
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
5 w# G1 s- a! x: L1 D* }( r7 N5 Rscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.$ X' C S( o! q8 b
8 O- i7 m0 z! WA look at credit markets
) @/ z. b! L7 \ `2 D Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
. {* D9 L" `3 x2 s3 zSeptember. Non-financial investment grade is the new safe haven.
, v/ K0 |# R% I7 t4 B2 ` High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
- U2 V# L" T, j. Ithen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
o. z. X& q9 W* W5 t% X L$ u7 Abillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have" D& A) j. E. p6 T( Y5 p5 n0 q' W
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
& o! p4 m; L: o' \# kCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
y3 D" _! a! Npositive for the year-do-date, including high yield.
" Z0 Y7 j2 |# v3 @1 a: ^ Mortgages – There is no funding for new construction, but existing quality properties are having no trouble! z2 Y: J, V: s2 C" j
finding financing.
1 J. x" ?% }2 Z: d# S Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
9 c' F3 a, O" H+ g0 jwere subsequently repriced and placed. In the fall, there will be more deals.
% p' ^; e7 _2 h5 E2 p$ t8 o Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
# R8 A: L j" `) N! j( H m+ `' iis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were. i, }1 l0 z$ ?/ _. V$ O
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for f3 g0 ]- c7 P
bankruptcy, they already have debt financing in place.
, N; Y3 {- y$ n( ` European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain, o$ J8 M$ L. m) w
today.
! p" R4 C$ r' u! H Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in% M6 }9 z6 _* o1 J* N; G
emerging markets have no problem with funding. |
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