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发表于 2011-9-17 13:16
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Current situation
$ Q3 d5 c! T$ E/ h+ p% ^) j( u' E The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
# `# r; } d9 E' c8 V% ^as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
3 ?6 T$ O2 Y, `( ]1 jimpose liquidation values.
9 G/ m2 J4 h+ i2 g) x; U3 t In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In$ H/ R# I7 v7 \- N3 A. t1 S3 ]9 a- _
August, we said a credit shutdown was unlikely – we continue to hold that view.
, R& @; M; G8 H3 ?0 C0 [! X0 U$ F The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
& ~) A4 r! I' e* Fscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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8 _( H; P F. z: K* f: hA look at credit markets9 z) y( t2 r9 H
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
( S" G, E: d8 c, t8 x! ^September. Non-financial investment grade is the new safe haven.
( @# H; ?$ V7 T$ n$ l0 R9 D High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%/ N/ K' a- P" u
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1; k) ~) I& a# m
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have; |' `4 p( k3 `: j' T* n& Y
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade. Z5 S& U/ B6 @3 c9 v% a! g; \
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
' v; f% a* F) \5 i8 z/ `positive for the year-do-date, including high yield.
& _$ I+ z( {+ B& f, I* X, H. S: | Mortgages – There is no funding for new construction, but existing quality properties are having no trouble8 Q1 ?3 R. D" f0 l+ K+ g# M2 _
finding financing.) x; O/ P9 N) \; |( y
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they2 n. h7 ^ A2 R$ m- R0 v+ {: D
were subsequently repriced and placed. In the fall, there will be more deals.5 O* a2 Z4 K! b" |/ e5 {1 X2 U
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and+ h% B+ Y" z% Z( z) p6 g9 i9 B) b
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
$ W+ w# U6 c: I4 p3 Q* H1 l" U! W( qgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for9 d3 V! W3 p, l. E, I# A2 X) A! p% l
bankruptcy, they already have debt financing in place.% d! o" A. p- H+ _& L) ?
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain$ o7 M) |- d6 A+ d w
today.
' P1 w- r6 m1 @/ H; y0 { Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
- U, s' e0 Q& y1 J+ a' Xemerging markets have no problem with funding. |
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