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发表于 2011-9-17 13:16
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Current situation% s. \. u c5 u/ m- A9 D
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
2 k4 K- l, E$ _' t- t/ d! las funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may9 T1 o+ z$ c# i: j' v
impose liquidation values.
: }6 f1 i8 y# F In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In( h' d! F) I- H: B. X1 g& ? Q/ I
August, we said a credit shutdown was unlikely – we continue to hold that view.
/ Y* N+ T) u" E The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension, j8 y% z( ? Z- K$ P
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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; G) H) R1 s/ r) b0 K( bA look at credit markets
& @) M% |* j3 G3 F' S6 m Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
, h' `/ O4 N! x( \( vSeptember. Non-financial investment grade is the new safe haven.
' e# D# A4 s% L High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%+ Q( X! s/ V0 P$ b" K& z
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $19 z" P3 m7 r: @7 r- o. U
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have, t) Y% g l& `. c0 M. h- D
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
; S7 D+ m6 E' ? X: @0 h5 ?5 GCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are/ |5 ]) ]7 e3 Y, Z8 L
positive for the year-do-date, including high yield.0 g8 ^0 }4 p; ]- L* f
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble: Y" o1 `6 w" I# \
finding financing.
S& E+ D9 \7 e0 X7 H Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
/ U2 D; ^# o, H: e6 ^were subsequently repriced and placed. In the fall, there will be more deals.
* _; {1 y. F$ i4 n ^9 z Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
# O/ T( R7 V$ B7 x: Uis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were, g8 ?: t1 c/ }7 K* i7 H5 d. p
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for0 `" V* d4 \- J( Y8 D/ j4 K
bankruptcy, they already have debt financing in place.4 u" K( T+ m7 M) x1 g3 R+ @4 V
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain+ F9 L& C1 _( W/ k
today.5 h# P- |5 U* ?
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
7 }( Y5 B# N* |/ ~8 D. Temerging markets have no problem with funding. |
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