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发表于 2011-9-17 13:16
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Current situation- }8 ?3 x' }! ?9 j0 t- U
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long5 n0 l! s; q" d. e7 G. X. V
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may- ?* N$ b/ P( n+ s0 C2 H) Y" |
impose liquidation values.
0 T, N. O, u. u: u: d In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
3 j) R3 ~* F5 z+ S" W4 u8 }August, we said a credit shutdown was unlikely – we continue to hold that view." N& r, v/ ~! a- H
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
" j5 O. F* O( Y* ]9 T0 f* n; {1 Nscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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( H: `# ^0 g' Q' p$ S/ ?A look at credit markets1 J) I$ I0 h) X0 h' E
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
+ F4 h1 _ w9 wSeptember. Non-financial investment grade is the new safe haven.
I* O4 D3 f, q. n( r6 c3 N High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%' h/ y. e4 z* u
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1% d3 V1 h2 c- @; n: t% i8 Q
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
/ K% {: y. a% p9 b& C6 ^5 Aaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
# F- L: _) \! b. k; rCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
0 _2 g3 X* ^9 j s) y% E$ Bpositive for the year-do-date, including high yield.+ U. I+ l3 p! N6 p/ [7 Q3 c
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble5 P" F+ I" q% k9 Q l. V8 L% k
finding financing.3 T+ {# }: n* e$ |9 Q1 \! b
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
( q2 l3 A5 W5 G$ t% Ewere subsequently repriced and placed. In the fall, there will be more deals.% g. q# w+ N Y
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
! I, U6 ` X& Y* `, r2 c$ u, M4 I" Dis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were# n+ M* @5 C3 M# s y! b; P& f T5 s
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for+ S: o! J+ D. M( m: R1 i
bankruptcy, they already have debt financing in place.
6 c5 C5 `6 O& t. G$ k European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain. T. q( w6 u; ^4 @- K' r& f1 G9 P# I% y
today.
& d, A$ \7 [! E! P- B Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
0 b5 A5 j0 p2 \' R5 l" A Vemerging markets have no problem with funding. |
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