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发表于 2011-9-17 13:16
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Current situation( x. }# u) ^4 \+ m% m' v8 q1 p4 e
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long5 @0 h3 W4 |$ _$ f5 g
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may4 W5 N! E$ M, \( O9 i; \
impose liquidation values.. A- x$ f: n$ A6 V
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
2 }% i1 J. @/ T3 ]! u& s# uAugust, we said a credit shutdown was unlikely – we continue to hold that view.& v5 \2 x& t( f+ R2 Y& d9 B" b* F
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
1 a% F0 m+ R F0 b% Mscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.4 y5 @/ _; P1 \/ f k5 z
, p8 |# m. k, g
A look at credit markets6 W0 C1 {* ^. f# v W) T) ^' F5 Y
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
, b& ?/ r7 H9 b6 G8 N. XSeptember. Non-financial investment grade is the new safe haven.) W. Q+ v# u7 k: I: B7 f
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
; l( `- Z' [( R, jthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1% ^( s# I w( ^# b
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
5 E# f% P' y/ e9 J, F, Kaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade7 D0 e- }8 k/ k, R2 s0 Z5 U
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
* `' T e s9 i- ^1 j/ w3 [positive for the year-do-date, including high yield.
9 ?# e6 F0 T3 O) S5 d Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
) p! ]( ^* \, Gfinding financing.# F& d1 y# p4 x" L/ V, s& z) \% D: Y
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
, M$ [) p3 V+ J3 \$ ]were subsequently repriced and placed. In the fall, there will be more deals.
8 N$ m r+ o# p6 t Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and5 b1 Z, Q- M! p0 R; a5 Z
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were7 R0 k% d) a" F% k0 U8 I* L% r% c
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
% M- w: |! I% |. Y# U g( Sbankruptcy, they already have debt financing in place.
- {7 c4 F/ R( g/ g& y European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
: D, b. e$ [3 H5 Z/ b; G9 X* dtoday.
- q* s: `# Y8 M1 W; l% D, Q Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in+ W2 i# ~) b# s, |9 @1 t" G
emerging markets have no problem with funding. |
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