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发表于 2011-9-17 13:16
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Current situation3 p8 u) p \+ P- ?
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
- D8 o5 c( U3 T2 Q1 eas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may* R$ b- I4 N+ U4 r" r9 w) e
impose liquidation values.
: A: F5 v2 Z, @, G/ Q- ?* x' Y In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In2 F$ O! O% T+ M
August, we said a credit shutdown was unlikely – we continue to hold that view.% O$ s* A0 k9 K
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
/ D) e6 |( ]1 b- U6 escrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.3 G' B/ t7 m) G2 @3 Z, i m( w/ D3 P
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A look at credit markets
+ T, H8 ^) }4 u4 \& y8 O Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
. E9 I: q5 Y) t+ D5 R/ P/ @September. Non-financial investment grade is the new safe haven., d8 r5 n$ o. G) s& D& T8 R; H. U1 e
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
5 g1 d3 R$ @: a5 }+ Y' f( d: ?then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
6 O% y) s- X0 zbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have8 X+ @' l5 E$ Q
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade/ t) L Y6 l8 w6 G# Z
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
* Q7 i+ F5 {, D. p. {% ` ]positive for the year-do-date, including high yield.0 X( S' R4 [- y5 e% v2 F
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble5 w% ^" m- O s
finding financing.
# d$ l/ w$ Z }# F' {& {: f# q0 v! x5 q Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they, T* t. k3 O: M2 \' L4 g
were subsequently repriced and placed. In the fall, there will be more deals.; ]- W7 F0 p" D
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
1 x, v5 m, O/ M; Wis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were! }, ?: m9 ?7 a* @: V8 Y+ g4 W
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
$ h% g9 W9 j& T! I e3 [2 Tbankruptcy, they already have debt financing in place., `- |' m6 c; b& _7 D( {! M
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain6 V/ |* L2 s7 j# v& Q
today.0 f- i |+ i2 s3 G0 L" v
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in d0 n4 W/ {& T* `6 l0 I( b
emerging markets have no problem with funding. |
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