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发表于 2011-9-17 13:16
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Current situation* y1 E J+ z8 U: o( G& ^5 D9 E& w" h
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
1 ]6 f. C3 G# h6 D$ m; R2 P8 mas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may& T; `. Y* ?% Z
impose liquidation values.
* M7 L0 k ]1 \6 ?/ }/ C, x. X. C/ _ In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In9 H7 P4 a* ^7 c6 E0 `7 U
August, we said a credit shutdown was unlikely – we continue to hold that view.
/ g3 ^- ~& S) L. E: L8 L9 w; V7 G0 b The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
8 u h1 u4 h3 w; S: p: Fscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
4 D8 Q: F& {0 E$ a5 K s
& @9 `) _. V0 z( z/ fA look at credit markets
$ j- y& a+ T. m4 l* M Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
$ n2 h0 P! M! ]& c; ?; o/ Z2 RSeptember. Non-financial investment grade is the new safe haven.- m8 ~: I5 Y0 K3 x- b
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
P$ u8 F8 `7 a* b7 M! \& {then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1( r" U- Q/ r7 F& k
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
$ E3 _% H( q, x' A" z7 Taccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
' U- |4 d5 B" a6 ECCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are# H* P0 G! Z3 N' m7 J! a' q! ]% d
positive for the year-do-date, including high yield.
& S& b( H" i n& A# y Mortgages – There is no funding for new construction, but existing quality properties are having no trouble- f: z$ ]& L0 ] }1 r9 y" ?
finding financing.
+ `: o6 o0 {' J" T+ h' z& Y Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
4 U: {$ i, V# H8 T/ D3 Xwere subsequently repriced and placed. In the fall, there will be more deals.5 Z. g+ m& U% d/ a& }/ }
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
: _8 f, g# S# E9 C% Ois now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
# N$ [) |2 n' O5 L: ^going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for c0 C3 U2 B, b4 P7 }
bankruptcy, they already have debt financing in place.
/ w* m. A3 C# G& k; B European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain5 _- Q8 G8 g1 m; o9 t% `& S
today./ v! i$ d* {* o7 R( m7 i- f
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
0 V! `5 ?& h$ i! Pemerging markets have no problem with funding. |
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