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发表于 2011-9-17 13:16
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Current situation9 A: Q' J0 g# C% B" ?% B! }3 D, Z; u
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long+ w! k" o! _& e& P+ k2 C* ?3 G& Y1 T
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may+ Z4 R& [# m. t& p$ t7 y
impose liquidation values.
; D1 {8 T( o9 ?1 A% C5 B2 Y In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In8 N# u$ q' S: U# e O, l
August, we said a credit shutdown was unlikely – we continue to hold that view.
5 d8 {9 b5 Z5 }2 g5 l The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension8 k4 X/ g& e1 P9 n5 K" O3 ~
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.8 i; W$ }9 ]; c' j- n# V0 {
% [ y+ U9 g: ?/ i, t, m6 @A look at credit markets! ^ v! v: D$ E
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
- `2 b: a( Q5 l% PSeptember. Non-financial investment grade is the new safe haven.& i) s/ O( A, h1 i* M4 a! @
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
7 K. w+ F8 }# ^2 _$ s8 u& h. Xthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1* M! a& R- X( e2 j; `3 r; j. \' W
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
& |- T0 ^- Y* w* E- J$ p1 _7 Haccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
& G6 A6 P: D& }( TCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are5 R8 _' z+ l2 B4 j
positive for the year-do-date, including high yield.
' W% t7 H! @6 C& l# m ` Mortgages – There is no funding for new construction, but existing quality properties are having no trouble0 {6 G/ h# l5 t6 g L: N! `" R
finding financing.
8 R9 i/ {4 s' H4 P" }% \- z Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
5 p7 h. O, y! l' S2 F( g" q7 Owere subsequently repriced and placed. In the fall, there will be more deals.
( r5 [2 s2 ]5 ~8 {: o Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and7 `( K2 e8 J+ b2 J+ ?0 y) `5 Q
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were+ g. L$ v1 u( v ~5 R( z9 C
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for! {4 v) B, j$ s" }
bankruptcy, they already have debt financing in place.
& o5 `+ \2 h T7 J; G European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain: ? c7 w6 A# z6 C) k0 B4 E
today.! S! i$ M! U3 e5 Z! r5 w. V: {
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
6 }3 U- @4 W2 uemerging markets have no problem with funding. |
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