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发表于 2011-9-17 13:16
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Current situation) d4 B7 g! D! T1 P
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long- s, T! |/ s* h! F
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may) V1 G' a' g( j$ U
impose liquidation values.8 m7 T1 m! a& F
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In& B6 l9 U Y& {7 F
August, we said a credit shutdown was unlikely – we continue to hold that view.0 L. @- Z; X6 S1 v0 @# c
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
: W& i9 a0 m+ n2 K8 H* Dscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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8 l: {9 I: a' p9 U" @A look at credit markets
3 ] S v1 ^. Q. U; p/ p1 q Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in3 N4 \0 r; _- x6 n
September. Non-financial investment grade is the new safe haven.
# J$ t4 @$ o n7 R M- b High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%9 @- N( [ L( }6 ^8 T
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $12 i9 W8 @8 e; s* k6 [
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have: [# W0 B( o+ N* g
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade: N4 R3 q7 P5 G+ L; u h
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
C5 G3 w# g0 _( }2 s; c3 u4 R* o$ Ypositive for the year-do-date, including high yield. E: r, @* s9 |7 L) i" B! D( }1 b" U) D
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble! Y0 _# _8 E) h2 s, ?
finding financing.4 `2 y' }6 K2 K$ m- ?) m, w
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
: v- ?' g1 j k" Jwere subsequently repriced and placed. In the fall, there will be more deals." F8 ]# B7 R/ L/ z$ B2 q: r
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
' P. q$ p$ c' z3 n1 ~7 fis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were+ M$ f+ w# D* {
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for" t8 I9 q2 r' f/ t D- {
bankruptcy, they already have debt financing in place.3 ?/ {: n+ \; a6 z; U9 D2 k
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain8 E, [# ?& U( W8 @9 g
today.& v5 ]: y* N, g( e, s9 F4 E
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
# Y5 [+ `& [( H, C3 Z. e9 Pemerging markets have no problem with funding. |
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