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发表于 2011-9-17 13:16
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Current situation$ e, |* [8 y9 y$ w* T
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long9 b9 L$ ^ c1 q4 R
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may& j# o: t. w) G& @$ b
impose liquidation values.% ]0 G! y y+ K2 { q
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
+ X, B2 f. L, l( {* L+ zAugust, we said a credit shutdown was unlikely – we continue to hold that view.
0 W7 e+ M: T6 l5 O2 [. {6 \ The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
% b. d) a1 ?; n' T. S, Qscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.2 t! g% N- Y9 R8 I) `- ?
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A look at credit markets
$ F2 C% S3 s) S1 A1 U* } Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
( X# x& q& [4 T& q+ j8 p3 bSeptember. Non-financial investment grade is the new safe haven.
9 H3 \+ }6 m3 U( A" k; J High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
( k! k3 ~2 j' j# e6 K& m- P. `1 Nthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
2 U2 X9 J. p" Hbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
) z. f. M- S% e/ `' U8 jaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade2 ^" c4 b" f; i2 h9 @ |* c
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
! X6 c% I6 n+ Kpositive for the year-do-date, including high yield.
8 e a2 `& b) I) x0 f- u Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
2 |! I/ k0 ]2 H" _7 w! f$ X8 Gfinding financing.5 m. w+ G+ x/ L& v( G0 P
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
( R; X" |% ^& n+ l7 C; D- F {4 `were subsequently repriced and placed. In the fall, there will be more deals.2 e$ s3 ~3 _2 s
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and! O" n- S$ y, Q& v0 k6 m# \
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were# k t2 R: g- M3 ~3 k- J- _3 f
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
- p n4 ^/ J* Z9 A* Kbankruptcy, they already have debt financing in place.
1 ~5 v5 q; i4 |$ k. h( e, f European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain( \; }( L o' `3 @/ L
today.
3 f9 W9 X; x [. [# t Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
. I7 }: g. V' M6 {4 aemerging markets have no problem with funding. |
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