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发表于 2011-9-17 13:16
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Current situation. f$ x0 B. W5 Q6 Q& Y7 g
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
/ R5 y( k w! U/ X: l2 `as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
/ y$ }; b% F( A1 F, T& Aimpose liquidation values.+ i! @! Z: i# D# @; M
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
/ q- Z5 y h; M9 z5 WAugust, we said a credit shutdown was unlikely – we continue to hold that view.
; u# @0 k2 ], s The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension7 D8 I1 P- u- L4 b( d+ R) C- e
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.7 V8 Y7 s; y( q# v* x
8 y# Z3 V' c2 u9 _A look at credit markets
6 m" o Z7 P) R5 Q7 Q6 }: y, _ Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in7 I! f# f/ s) J/ r$ @1 ?
September. Non-financial investment grade is the new safe haven.
0 Q& I7 \9 }. N0 e High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
$ Z0 K. d8 ^* H) L" _then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
4 K5 b1 G( [: m- Obillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have3 M- T" p- ?( e4 m$ i; T: e/ k
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
0 x+ o1 [" K1 zCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
* S& K/ O" }. Y6 M e$ t& gpositive for the year-do-date, including high yield., t: r0 l$ n! ^3 L
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble2 k2 q4 u$ g, C& H, U6 g: ` \
finding financing.6 O; N& I# M2 I+ h& t: }
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
9 o$ ~4 J: h2 |: Y. f* jwere subsequently repriced and placed. In the fall, there will be more deals.
* Q% e* \ R+ t$ M Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and8 C W( P; z/ C4 o3 V$ k
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
0 }3 U! n5 T4 ^4 ]$ C K; igoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
: C) q8 P8 G& E1 obankruptcy, they already have debt financing in place." E0 P- ~5 |& k% I
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
* u2 X; ]* \! p; G. {. y; n' Dtoday.
! w, ~7 n$ |: x& O( L, t3 Q Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in$ S, f4 a. K9 _! t" ~9 G/ W
emerging markets have no problem with funding. |
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