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发表于 2011-9-17 13:16
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Current situation* J0 n X9 Y6 x7 K7 q" k- W
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long W9 n; @; ?; `1 W! l2 n/ q
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may0 X# q6 P: C, g1 H" z6 C
impose liquidation values.: ~3 g4 }% l4 L
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In/ f- G9 k* q. X1 {) P- [5 E
August, we said a credit shutdown was unlikely – we continue to hold that view.: s) v! q) v, G) M6 s
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
! N4 F( }: j8 i! n& q$ Mscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.3 Q% @7 ]: k( g+ S2 g
- I/ z4 a; S- r% R# M) Z7 C5 aA look at credit markets
~4 f) w" M2 o1 q/ t( F, c5 q Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
' ?- Y+ ?& k% iSeptember. Non-financial investment grade is the new safe haven.3 C% Y7 G/ ^9 G' W/ h! [: h
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%" B' k/ J' J8 w% b8 H- t S0 \
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1+ s( V' S5 U! o( ^% v$ M
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have4 p0 ^. J3 i$ o, F. s
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade" M! V4 l& S- e0 A) M8 ]' L8 y, p3 B
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are3 `( @' F" C; m- C* i
positive for the year-do-date, including high yield.! o/ v$ ^/ d# e
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble; }: e$ G3 w. W/ m
finding financing.5 [! j+ }1 K! U# F
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they8 ]8 p* M2 m9 V% }. O
were subsequently repriced and placed. In the fall, there will be more deals.
) p/ q# m8 e6 J# i* w x Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
' h- g$ ~! J9 @( S; C8 `( c: Eis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were6 _0 I! F' Y4 }
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
8 }, Y$ ?- v! I% Cbankruptcy, they already have debt financing in place.7 t1 R5 d( }. V4 C& Q
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain B* G) r" B- _6 D" E/ ]% w
today.
5 |7 p J3 ~, X! t2 H% F+ V7 d Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
2 ~0 z" I2 l/ m# Jemerging markets have no problem with funding. |
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