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发表于 2011-9-17 13:16
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Current situation4 {5 b- a4 a, L3 w: Q7 y7 v- O
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long' C4 j. y6 ]% o8 r/ Y
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may7 S/ H# a5 {1 p6 n6 p; s
impose liquidation values., K* n6 d1 c' R. ]
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
6 k3 U/ @: K4 I1 Q+ A U9 y8 fAugust, we said a credit shutdown was unlikely – we continue to hold that view.
/ r) M9 Y R) b: \$ O The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension& [1 j* w% h) f8 G
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets
* D: t! G5 m8 I! V' c Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in1 s3 R) Z: G5 [5 @* }: _ d: l
September. Non-financial investment grade is the new safe haven.
$ u9 l6 H& {; f6 T5 x/ q: M High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7% I9 ]5 ]( b" j* ?4 y# a5 ~
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1: e+ p" ^4 r0 m0 d: T' L
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have, P' ^) y, A! P8 E8 e1 ~8 w2 o
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade/ D7 a, t8 [( R1 @1 {; C$ h
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
( T: B0 H: b+ b4 `5 S$ Bpositive for the year-do-date, including high yield.
" m `: l2 w, @5 u# g( | Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
" F5 r, Z( ~" X& B5 o! R% g- K: wfinding financing.
$ m0 e; Q! H, @. }5 E! e* E7 S Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they* G# p9 \$ }5 F. [) r- e
were subsequently repriced and placed. In the fall, there will be more deals.% a) @' i5 Z4 D4 Z# l1 `; Q
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and# }6 G6 m8 q6 Z6 i4 d$ G, S
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were6 J$ |7 D" g8 O) y6 _2 k0 b O' E
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for$ i+ _* u$ f6 v, K% X2 `" w
bankruptcy, they already have debt financing in place.
% t# j! ?% ?: {- J, z3 x9 G+ b European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain$ m' F% k& L% W. D4 e1 |
today.# Q0 v' _) B7 C) g
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in% s+ U2 c. B3 v6 q% C) M
emerging markets have no problem with funding. |
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