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发表于 2011-9-17 13:16
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Current situation6 T9 `: [: z/ R4 O4 g! G; O
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
0 j2 P/ c6 D# M" X, G4 Mas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
6 o+ l5 ]$ w5 [) L. W( P/ mimpose liquidation values.
" w5 p' b. J! A- p1 T2 A In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
\* T) y- [8 l5 c# HAugust, we said a credit shutdown was unlikely – we continue to hold that view.
5 ?/ f. i* {# S' c The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
+ X( I# s' V+ @6 `( oscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.- H2 |" c# | U8 ~2 ]1 m
' v! |. Y) U1 h8 ?A look at credit markets$ v8 K' s' \6 D$ V0 J( J \
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in- S* J3 a6 s# Z- N2 F. i# W6 u
September. Non-financial investment grade is the new safe haven.) y9 {* ^+ P! Y6 ?+ ^0 ~: o% c/ h
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
; \7 i; l( s+ W; sthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
8 t! v. p% E" K1 }" m! mbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have! i. }* [8 J, h1 d' f% l. ~5 _
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade& H( X( \ E( G. T; Y0 _4 k0 v
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
7 b- e, P |, Q t3 n8 Kpositive for the year-do-date, including high yield.
( U4 B/ d6 ^+ C/ y Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
9 i2 G8 W. X9 F* I7 qfinding financing.9 U3 d: p0 G( @
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they6 c* |$ q4 B& a9 s; P ^
were subsequently repriced and placed. In the fall, there will be more deals.
) g& N9 ~1 n( o3 o Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and6 O z, `4 Y, X; O7 |- d
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
# L5 Q0 C; M1 k+ i9 I3 Wgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
! J! V; i3 ^7 N2 U* K& ]6 O" |& Fbankruptcy, they already have debt financing in place." d: l; f$ ^0 D( n3 {6 M x
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain$ I1 m+ w( c: S9 {6 ?
today.0 }0 l9 g4 Z1 {* p& N3 ]
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
/ t/ f, Y/ ?* Q& \, x* u! l6 A$ m1 oemerging markets have no problem with funding. |
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