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发表于 2011-9-17 13:16
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Current situation! Q ?8 }! q& Z6 Q3 t1 X+ c
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long- [" E7 a5 S' P3 k5 |3 c( W
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may ~) H- `: O2 z! v9 q
impose liquidation values.
" n% `6 e' O4 I' p+ e; s In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
9 d5 ~2 i K# V+ l3 IAugust, we said a credit shutdown was unlikely – we continue to hold that view.2 M0 z: T( p: m$ t# k
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
0 k5 S% ]* { \( k, sscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
) A4 f. t& i9 M; R8 a( B/ Q: h' N
) ^3 B+ y' i; U+ X# F0 kA look at credit markets7 }+ e3 n& b0 S3 H. ~
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
4 V" ?9 Q4 |* oSeptember. Non-financial investment grade is the new safe haven.1 {$ F# C7 C# Q/ m9 m. F% m' E0 d
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
5 \% \+ c7 H2 e" P% |3 {6 \then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
6 A5 e2 b: r1 X" n$ `3 Dbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
& z5 R0 E* P' H( T8 Faccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
; y' F5 Z$ a$ G5 U' Y/ G6 l$ ^CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
- F9 H) W$ Q2 W7 Z7 tpositive for the year-do-date, including high yield.
8 s2 y0 G% {, P; z Mortgages – There is no funding for new construction, but existing quality properties are having no trouble' j! t! X" y8 W/ H
finding financing.
% Y6 W/ V7 N0 q/ b& o Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
" v% f9 B Y0 {) |7 t. G# gwere subsequently repriced and placed. In the fall, there will be more deals.
% u. j4 ~) |' Y: g' L! a) \ Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and: n1 S# D. y1 a7 V
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
" W" V! m$ F& M7 `* M" O5 U+ \going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
4 F- v5 D" m [) @bankruptcy, they already have debt financing in place.3 |; z ?: G& C
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
# u* M9 ~- K# e) E: ^# o. y+ s' qtoday.6 a6 d, j9 G1 y, C# B: e& _
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
m( |7 |# d0 `( H* [# [emerging markets have no problem with funding. |
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