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发表于 2011-9-17 13:16
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Current situation, L5 H- m9 U; ]/ G+ B9 O! v
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long2 b! `9 e3 a# {* @/ _0 ~: f
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
3 J/ n* {$ D7 j: timpose liquidation values.: Y8 p9 l0 d( H' x% A
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
% C, U+ x6 C8 D8 u8 i9 lAugust, we said a credit shutdown was unlikely – we continue to hold that view.# ^. O+ @' d+ U% ~
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension0 D! L _" q: O
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.1 a& Q% v# A) Q& z0 r$ G: A- Z
) m& |1 e* O" W2 bA look at credit markets
4 b9 E, l& W8 [5 g0 u# @ Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
5 o" Z; n6 M, o( f) c& e- g& uSeptember. Non-financial investment grade is the new safe haven.
6 Q. A p( L) R0 x High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
" L7 _% {5 |7 O# Z3 A& x/ T% J' Ethen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1* Y3 W1 n) D5 I+ _6 @
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
* d$ L+ s* O' c1 V1 H% P0 b: ~5 ]. ?1 Y% Oaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade) z" b5 A; K6 Y# i) G" c
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are& e# { v2 G; J- G* ?3 W! s
positive for the year-do-date, including high yield.
" N1 ~3 R# P; C/ x9 n3 S Mortgages – There is no funding for new construction, but existing quality properties are having no trouble: q/ {6 G- ?/ |1 g, T' D) L
finding financing./ s% Z: g, C/ l' ?8 h
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they8 D( a: ~% Z; e! {1 G) O
were subsequently repriced and placed. In the fall, there will be more deals.
- @6 u! x( t$ i, z. ?0 a Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and5 s# }5 ^' @, n8 {2 `2 H' a4 Q
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
, `0 a/ d' |" c5 Y. y2 Pgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for/ _+ t n+ I# ] Z
bankruptcy, they already have debt financing in place.2 U8 @1 C" y3 o h5 E8 ?3 Q h7 s
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain/ a' w r) K/ _; J4 g7 }5 M' P
today.6 R' k0 l0 t+ W5 y: |4 @
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in+ t; e" l- L. P6 [" V
emerging markets have no problem with funding. |
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