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发表于 2011-9-17 13:16
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Current situation
9 V1 `: O7 U+ t) v* {6 n The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
; O; ^* L( H0 Y& Aas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may1 y) U- K7 H; E0 h3 U
impose liquidation values.
* ?2 [" h: U# v# O In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In9 q% [( _9 n# C) k Z
August, we said a credit shutdown was unlikely – we continue to hold that view.- C0 n. H8 r* S2 m4 l& [' l5 H
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension. M9 ^; u7 K- W& y" \& u2 T. e
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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" z2 F c. _. } wA look at credit markets
; S6 l' q& K! U. A6 n Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in8 ~8 _" P. a2 w2 Q1 k. b- @0 B
September. Non-financial investment grade is the new safe haven.( B$ G$ I9 J+ \2 p. h& x
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%4 [% }# }3 h! z9 c
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
* o+ p/ E& G0 b: y+ D- Y( T; U+ hbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have* ?4 N4 A& I8 R" Z" w8 E% X% p A
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade8 ]0 ]( ^! l) ]2 D" P- ~! C
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are) A. k/ t1 q/ C+ N
positive for the year-do-date, including high yield.
- r3 n6 V0 J7 C: {- S! u E Mortgages – There is no funding for new construction, but existing quality properties are having no trouble4 x @: C8 u6 Q. p# Q+ @$ |
finding financing.. V! O+ m( ^! {. X; g/ k
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they8 V0 o- a0 W5 |
were subsequently repriced and placed. In the fall, there will be more deals.) M* S9 g5 N+ E2 n6 c
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and) p, A. C2 R4 ]' w" E
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were: c" |2 m" }7 n( n5 O! [% t2 t
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
( C& b4 [6 `# sbankruptcy, they already have debt financing in place.
- Z G- V: k6 e2 O/ T European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain Z9 z% y* i( L4 Z2 O
today.
# R5 z- o7 x7 _2 M% c. V0 y Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
" n* n1 |3 G$ m! i; n" q {1 temerging markets have no problem with funding. |
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