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发表于 2011-9-17 13:16
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Current situation i1 ^' q, L8 N) K4 {# v0 V8 V9 J% v
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
- E& j7 G- T h' M! P% z- _as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
; m4 _) g# P1 D' l+ s/ ?9 ?impose liquidation values.0 Q& m/ G" r* S( X& p
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
6 `8 @& `2 s0 b5 ?% t2 L3 h; A; a f0 rAugust, we said a credit shutdown was unlikely – we continue to hold that view./ G0 S; T: j4 \' Z
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension* e7 K o0 y. q2 l. F
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.0 a) L1 n! F+ d; b' y9 x
1 x# [; j$ K( \2 k8 Z; xA look at credit markets
5 S. d( g, i; R% @& ]1 @% t Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in, x+ J7 ^) L: W6 D9 d
September. Non-financial investment grade is the new safe haven.% U/ Z0 o* N9 w ~7 I3 R
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%4 ?% t! Y) g' i6 k% Z% D0 p! g
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
1 _8 z% q: g7 L8 \billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
; C1 o; A+ ]& c$ T- z7 l+ gaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
7 j7 I! U/ U/ x% D9 S" oCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are1 A; q- T/ N& a" E! [4 d, }) Q- y
positive for the year-do-date, including high yield.
- Z/ @1 f2 G: J Mortgages – There is no funding for new construction, but existing quality properties are having no trouble, T0 }) f2 V1 E7 I
finding financing.
- a" m) {7 O7 I' w3 B; z Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they3 q# Y& a, R2 V+ E) o, v) {
were subsequently repriced and placed. In the fall, there will be more deals.
1 Z% t' e& }/ V Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and2 B( }5 l; [4 l. }( U
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
( x: \7 v% {% o' ` Igoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for' y* [- R. D0 G3 ?8 L1 q! F
bankruptcy, they already have debt financing in place.
7 B7 |, I, U) ] European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain& n8 t+ e: }' H) ]
today.
6 m W% j' U9 Q& G; t5 ~ Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
3 Y# b' y5 z7 S( a. {emerging markets have no problem with funding. |
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