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发表于 2011-9-17 13:16
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Current situation8 @) V7 `: G0 _9 Y5 Z7 g! g' }
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
+ A5 m) b$ D7 F4 W% ^7 Gas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may. _7 c* F8 ^$ O
impose liquidation values.
+ c, X8 _0 G" J! x In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In. k4 z% V# k' [. Y
August, we said a credit shutdown was unlikely – we continue to hold that view.0 G1 K: e, B% p0 F/ M% I) S2 G( i
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension- w) c0 M7 T& u1 R0 P& c6 I
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.+ ]9 |/ a) A. ^' c( I) e$ P- F' z
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A look at credit markets# N' V5 f% z% P4 G8 f
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
2 Q- e3 Q; J7 Z- N; M6 k% Y& ASeptember. Non-financial investment grade is the new safe haven.
2 F9 y" K3 `* t/ V$ J High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
1 E1 v: R/ X+ L, u. ythen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1" h0 T( k3 v3 N7 @
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have( q. m3 B" x' `
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade7 P) H. ^) G3 S
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
. |2 @5 ]% m8 u! V0 i; epositive for the year-do-date, including high yield.( @# H9 U4 p, T4 i/ M* S* K' f
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble$ p( u; g8 P& ^, v. s
finding financing.9 y- o6 }/ g6 A8 l3 G2 \
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
' s y5 f0 }# u3 Xwere subsequently repriced and placed. In the fall, there will be more deals.4 b5 h+ L0 D |& K# R: I$ E w5 i% `. L
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
( k0 a4 ^, G+ k2 D Mis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were: h" L3 \7 p$ c3 a0 Z7 P+ h1 s9 C
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
# l9 q* |0 `5 ^! k+ s& J, hbankruptcy, they already have debt financing in place.$ |$ L1 C) n5 z( L$ x; ^: X, O
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
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 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
) y7 v, {6 j) E( G% j6 K- _emerging markets have no problem with funding. |
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