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发表于 2011-9-17 13:16
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Current situation( P4 J1 G( R, i8 |6 k. g4 y0 B
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
1 X6 d' w8 D0 o! B$ \as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may& {# `) I0 H* ^$ l/ s
impose liquidation values.; @8 @, K$ i# X
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In6 ~) X1 S2 r: d5 Z7 I
August, we said a credit shutdown was unlikely – we continue to hold that view.5 V0 q* _+ J% {8 n; z0 }3 a! q
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension+ [, J! ?' `3 \" A3 u& U( ]2 k
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets( I) t; Z! ~3 P: U/ y5 j8 h
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in* g$ h! K2 f4 F Z6 a& k# Y
September. Non-financial investment grade is the new safe haven.
0 E. G$ q/ ]2 J$ F g, X5 j High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
, {& d; j8 B1 G$ w. O+ rthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
; T1 a) _ n7 h, M% h# [4 a; ^& Vbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have7 w$ t: T* |$ U4 P( ~- g+ y8 K
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade3 O! N& g7 E& x4 `2 U# F2 L
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are6 G- y. l$ |! c. @- O9 W
positive for the year-do-date, including high yield.
6 y; X% D& i' k5 K% S( u: u' b' g Mortgages – There is no funding for new construction, but existing quality properties are having no trouble6 ?2 b# X1 A. B% `$ j4 M
finding financing.+ z) r$ r: Z H d r- G. g' s
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they' }/ {7 C4 e- d; f$ y8 M% m
were subsequently repriced and placed. In the fall, there will be more deals.
: ]9 Z4 E% }4 Q/ [3 M- E- { Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
' C7 _& y: S0 q$ u$ _% b2 xis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
2 H5 G, B& P: L* V( ?going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
5 _7 e+ ?& u) p) p4 lbankruptcy, they already have debt financing in place./ {3 d* b6 i3 i7 `+ h: \& f
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain. C3 s- V$ @( M' ^" `7 v, s
today.$ p: D! }2 C. ^) n0 n
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in# O2 s, T/ K; L9 W( \# `
emerging markets have no problem with funding. |
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