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发表于 2011-9-17 13:16
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Current situation$ ^ i! K" C) F& p2 N8 S2 h- ~
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
: O8 q" S8 b& S4 w7 N8 Kas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
5 t7 b" C3 o2 L& e$ N8 \" O7 kimpose liquidation values.2 A5 X" H% V8 z* F7 d
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In3 _0 v/ t' B0 Z3 g& O* g4 v
August, we said a credit shutdown was unlikely – we continue to hold that view.
* K( H- s- l* o The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension+ a5 d- a4 {# \! _& Z
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.1 E2 B# h3 ^" G& e8 c
/ n/ ~/ m/ S3 {* e& TA look at credit markets
! v0 g0 F( I ]6 G Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
. Y' H/ o+ h7 {/ d1 ^$ aSeptember. Non-financial investment grade is the new safe haven.: N2 l5 Q& o, u
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%( P0 P9 ?: A1 w' c0 Q! I$ H' F
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
" F2 j2 P( W8 `0 ~billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
% y! m7 g1 r' N% `access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade8 L9 v2 N3 ~* u6 O. w, _1 f0 |0 S' U
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
- Z1 E# { H7 J# v, gpositive for the year-do-date, including high yield.8 Z" Q) f. e" _) `- E1 r
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble: |8 \6 U5 Y8 C! s" b, u# R# D1 K
finding financing.
1 {/ p& n& ~5 \2 H Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they" [/ d. m5 Y, M7 M
were subsequently repriced and placed. In the fall, there will be more deals.
2 ^5 q# z" F; ]6 L; P! W: B Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and* b( k. y$ c# l9 x
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
j; x0 f0 D& t: ~, dgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for( g9 Y ^' r" q" d# \
bankruptcy, they already have debt financing in place.3 l' l# B: T& G0 ^* }
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
0 z6 q( a1 ^6 y& k; o# dtoday.
) w. \5 @. u+ e5 H8 b' B Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in/ j3 k; B5 |/ Y
emerging markets have no problem with funding. |
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