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发表于 2011-9-17 13:16
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Current situation$ o4 P5 u1 I5 H4 Q7 t6 U
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long" V! ]1 N7 J1 Y- _ w
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
: V' o) P! c8 a) d+ b5 u% ]5 T _impose liquidation values." E0 G2 w& @ M
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In5 l/ e. n$ ]3 o* p
August, we said a credit shutdown was unlikely – we continue to hold that view.2 n# X$ t* n! X* Q5 Q' e8 W* O; N
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
v; f1 e( u, k# I% [! H! m. T+ pscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets# B# Q3 H" G6 i0 f/ k/ `
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in0 T2 h; C. u4 @
September. Non-financial investment grade is the new safe haven. Y8 m3 x4 c# D* I4 Q. H" S+ v. @* X
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%4 i' o b, ]; R) V/ Y3 R
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
0 h2 u" {- |/ M1 \8 e" _billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have E+ b# G* ^$ @1 l0 L" K
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
9 U% l2 R9 J- X# uCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are- w) G, r- Y. l$ k9 `, r
positive for the year-do-date, including high yield.
1 X6 s+ M; t0 S3 | Mortgages – There is no funding for new construction, but existing quality properties are having no trouble- x" U" }: ^4 F3 c* X3 W; V1 ]8 n* q
finding financing.6 F$ I7 v0 h* k7 P! i7 V% g% `
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
( s( K; b% f$ Awere subsequently repriced and placed. In the fall, there will be more deals.
0 X- E8 [$ y- D Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and) h/ f/ x" f! e; J8 ~1 L! Y1 E: O
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were/ L! c! m' o" O& N' Q6 }9 c4 E. ~
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
) @# }5 C3 f: t: l1 h# k# hbankruptcy, they already have debt financing in place.4 e) r# Q% U# s8 _8 z- M
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
& v+ _" B- @- ?" W/ J: _+ ytoday./ U3 d J5 \( d: k! a1 M6 [
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
% H7 ^% w# t, p+ \( A6 I7 a. Jemerging markets have no problem with funding. |
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