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发表于 2011-9-17 13:16
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Current situation+ Y0 \3 C8 n. Y
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
5 I1 @) r) A. L( J5 |. ]as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
# r9 U$ b. C& Z9 R9 U* Iimpose liquidation values.
1 ]* z% D& O$ p9 ~; I) \' f In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
: N3 Z8 C+ \, G( X+ zAugust, we said a credit shutdown was unlikely – we continue to hold that view.
8 H2 K# a- W) ` U The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
" S6 q5 T- H* { r3 z) qscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
: _0 E7 \5 C/ T" b0 z: \9 R
, t0 ~' u/ ^% U$ E5 n) `A look at credit markets
$ h/ k% l: @: _8 t Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in# s% o) a: ?! r* e; A& w
September. Non-financial investment grade is the new safe haven.% }8 s1 u$ y- y' Q5 x+ `+ I
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%: Z+ `- n/ K. @7 m' [
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
8 y5 @; H7 L. Ibillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have+ e Z( s \& ]8 K- l, v6 e0 p
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade" X/ B# H4 z9 p+ R+ ?9 s$ ]
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
* q8 p& j% G) M0 Npositive for the year-do-date, including high yield.
9 G; U! `( z% B" @2 }; t9 G& @ Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
" [' x+ Z& N8 r9 L, Bfinding financing.
* w: g; l9 p& C7 X2 n Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
7 H: i( X6 F6 H! P$ n$ {9 Twere subsequently repriced and placed. In the fall, there will be more deals.
* s1 _! p L# t+ X Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and; m5 j+ u' \6 A
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
4 {/ ]6 `! H" |% Y7 j6 z7 ~8 [going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for+ ?2 S8 Q% U% o& A1 E( J5 d( ?
bankruptcy, they already have debt financing in place.
& Q& v7 x8 h; Q9 n European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
9 J- k: F) F% O+ ytoday.3 T* i9 G$ I0 D: ?2 [# f
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
" [$ c% h( a |* A5 vemerging markets have no problem with funding. |
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