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发表于 2011-9-17 13:16
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Current situation/ N( v$ `: k; Q
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long+ D9 A7 X/ t4 ^8 ~3 O. j9 a: B. v
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may& B: H$ r( z* x" p8 f
impose liquidation values.7 R4 L5 J- z2 p5 p2 T( L
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
' i2 x" [' m7 e. ]' i/ D! K. w( |August, we said a credit shutdown was unlikely – we continue to hold that view.
- U- o# B. X t% R The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
/ X* w2 ?; P5 A; X, K) ]! Sscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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/ `% q Q* `7 N3 F5 [6 X( JA look at credit markets9 v. \0 ?; e( G& ~7 \, O
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
A' c! y# {+ i* u) a, Y* o- x0 BSeptember. Non-financial investment grade is the new safe haven.
/ b8 C- Y* m% ` High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%) F( p; ?1 H- @, i
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $19 {! B k' j% t) ?% h/ q# |
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have$ I% q+ z) S3 u. T" x) T
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade9 F6 I% ?) X$ K4 u2 |% D3 j t
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
: I' u1 f, p5 |4 _/ Opositive for the year-do-date, including high yield.
7 h- A& z/ @ r3 M+ c5 k. c Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
* b* I8 z5 b3 ?8 d d& f$ W+ vfinding financing.
& E2 y6 ]. y8 w( X \ Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
: _ y- Z0 N' _% o+ m2 xwere subsequently repriced and placed. In the fall, there will be more deals.% ?8 |$ ?- W! c7 A
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
# |& E" @) x6 B* N- Ais now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
( ^* O& M5 {- X. T0 i; z& k' }going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for) ]4 W5 f4 A6 M) V4 v7 r- E
bankruptcy, they already have debt financing in place.
/ N5 m: ~( p5 X" v% e* V( j) j European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain5 J. G, q. g4 s# J
today.6 I. J& \+ Y/ {* e1 g; p
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
9 l& S; a% f" iemerging markets have no problem with funding. |
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