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发表于 2011-9-17 13:16
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Current situation0 j0 R" L$ ?0 h& W+ T: D: |8 f
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long1 ^$ y) o: E7 \: I1 n7 ^# W& r
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
7 N" W: ~6 ?2 e6 }0 nimpose liquidation values.
: W/ Z- f' C( M0 S3 E/ l In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In0 c- |. w, b# c' C6 f$ h
August, we said a credit shutdown was unlikely – we continue to hold that view.
2 `6 ?0 b/ N) d5 M) y& \' V. t The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension5 b; X5 ^+ T" Y" {: P/ z, Q# D
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.# v) Z* u9 G( O$ z1 t6 z
4 n3 S9 s0 Z N0 x# U. GA look at credit markets
) t& J/ T- t$ d4 G; M- x" h Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
( t# n; r8 q1 V! F2 kSeptember. Non-financial investment grade is the new safe haven.
0 }9 h# ], g5 F9 `7 U$ y/ | High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
7 e( |8 K6 W' z8 d: ?' N9 Q- sthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1/ T) r. A# Z4 Z+ z6 {
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have1 Y7 p! A" p% J0 w
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade! i* [* G7 @) Y* Y# F
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
: T w0 G/ W7 N& @$ \3 J/ ^5 Bpositive for the year-do-date, including high yield.
/ O3 |( c S" D/ D4 }' W Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
! E2 S9 b3 c# q3 o6 M7 X2 V' Rfinding financing.
) B4 l* _$ B1 x) x- Q* I2 A7 G1 x( b# C Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they$ ]; t/ G$ j$ h, Q5 o2 X, Q5 T
were subsequently repriced and placed. In the fall, there will be more deals.5 i- z; j* v! b- R3 F' \7 W2 D
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and' h8 R: o! z8 g. u4 r4 C
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
: i8 b5 u' f) p+ R/ U' H1 s, Egoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
# S# U9 s6 S/ L8 T( }, Nbankruptcy, they already have debt financing in place.' w/ B$ z/ O+ D+ V! e( ?
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain. b3 t$ c* O7 W3 k
today.
) I7 i! J5 p! U# | Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
( h$ H9 G3 W+ r. demerging markets have no problem with funding. |
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