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发表于 2011-9-17 13:16
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Current situation
6 V3 E3 M6 _3 { The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
7 { j3 O* {4 c0 |: N" Pas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
" M% u$ h' L7 n* I$ Ximpose liquidation values.5 C% n. }! X( ?0 h
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
, f& U9 d, d0 f# KAugust, we said a credit shutdown was unlikely – we continue to hold that view.
! j; G+ t9 a( b) X The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension D: C5 H% W/ Q0 S3 o# W
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.- Z( e( Z* p( W0 [- b" L2 l
; [+ r7 F& h+ F$ y0 G* }! M1 mA look at credit markets R* L, u- h5 J6 M
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
% g, [9 }$ x: U" p. ASeptember. Non-financial investment grade is the new safe haven.9 ^5 J, F' F. {4 ~+ I9 E9 ~# N7 ?
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
4 i, M. O0 D2 r2 J4 G) Mthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $12 Q9 z0 o: F2 Z/ b9 q& ?1 g: \
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
( f+ U# P; {" e$ U7 k8 T' y. H* zaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
; O5 U7 I$ s6 Y ?/ ~( z, ^! ZCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
; j/ @. n. @. W, z: a' g F1 vpositive for the year-do-date, including high yield.& y. T2 k0 q* {
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble9 a- w. l, J$ v" w. L2 S
finding financing.- ~: u; B, @9 I; z7 c; ~( v. R
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they+ C# n% M2 Y6 j/ n
were subsequently repriced and placed. In the fall, there will be more deals.: w; P# V# Y, o
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and( J9 `- B7 L$ q1 f5 ]! c3 _
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
; A }3 @$ I0 T# X, }going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for- R* \4 i' b. C+ n" R
bankruptcy, they already have debt financing in place.. J x0 |5 q6 \6 x/ U; ^5 Q5 j8 G
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
z( t3 h$ s' x# `# Btoday.; b D3 M0 e) P# F- _, F X* |
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
3 F( v% e* Q. C S9 F8 e, k/ g8 _emerging markets have no problem with funding. |
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