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发表于 2011-9-17 13:16
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Current situation6 O% {% r3 d7 c& k7 q9 y) ?
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
; h9 j+ \0 i1 Z9 T t1 ]' Mas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may) {$ q# h+ P% O) J$ D
impose liquidation values.
5 O) h$ N* a. {( _" z& V In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In/ ^: o& _9 x: R n1 A, t: r' }
August, we said a credit shutdown was unlikely – we continue to hold that view.
0 `) S. q' w; m, G5 ~& x The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension6 \) e3 U: f3 j& m- b
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.9 w( V% e( I" p" T! U
: y0 P% i1 I! P. z: ?% z7 RA look at credit markets9 p/ C- z( |& m ~4 r* j" g
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
9 J7 w4 I' V Z7 S& _September. Non-financial investment grade is the new safe haven.
5 e, N9 b$ [) K& u$ b, \" k9 M High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
& q- v! x; ]5 @4 a9 x$ bthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $17 j: M! Y; }& b n1 A E2 ~1 s' p% q" y' _
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
) [: }+ t7 }+ ?0 ]4 Uaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade" g6 v* w; p4 T5 C
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are4 Y3 g- m/ B8 C6 a- u: P& W
positive for the year-do-date, including high yield. N- H6 H! h3 G0 d2 g/ L1 h
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
7 ]' P! Y( j8 bfinding financing.
% _& ~/ c; l/ K, [# [/ R Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they; J6 \: t0 ~* h) k) B/ n* i4 }
were subsequently repriced and placed. In the fall, there will be more deals.2 Q" C( {6 p, y0 q% f
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
9 Q$ f7 } e8 ^9 fis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
/ C3 K& f6 y) L6 s) O* ugoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for; V5 {# a# d4 t+ R4 H9 h
bankruptcy, they already have debt financing in place.
* N2 Z/ ]) v4 V+ u European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain0 k% O7 y5 N P0 q9 p8 U" K+ b
today.
$ |' }# R6 t8 ? Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in3 A& D9 @8 Y1 }. B3 Q) o4 N
emerging markets have no problem with funding. |
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