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发表于 2011-9-17 13:16
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Current situation8 ^2 M5 V- l9 g4 w7 K9 w8 h
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
4 H `' Y/ i; Z0 das funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may: `. \" C- L) f( F% N1 w" b
impose liquidation values.
8 \* E( x, E5 { In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In/ u: @+ q9 y- l- l' b% m9 I1 }
August, we said a credit shutdown was unlikely – we continue to hold that view.% |) X6 x$ r/ X' M; `
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension! R; d- h2 C' h
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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; `. O* B' @( {5 A5 s. SA look at credit markets) A9 A/ f5 r4 o1 w6 i
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
5 T% l2 n/ I# S; C3 e+ c! ^September. Non-financial investment grade is the new safe haven.
8 q4 M( v: i+ q4 V0 p0 H' F& z1 i High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%- f8 o% q2 P. p( S
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $11 G4 `4 l0 ^, u7 U+ {
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
' p9 v4 b; i3 ]0 m' t, |2 Gaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
( u8 G) B8 B, M/ X- _CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are1 u1 [& O$ Z( h: G3 |# y1 J
positive for the year-do-date, including high yield.
$ _+ n: Z5 f- c) J& Z Mortgages – There is no funding for new construction, but existing quality properties are having no trouble" }! D/ R% i" ^% t6 g
finding financing.$ z' E- y# k, ?$ f: T6 E: X4 L) {8 W
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they+ }8 U k/ J: v
were subsequently repriced and placed. In the fall, there will be more deals.
7 f$ I! L4 S) q: ]& a7 q* c8 N; m* H/ U Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
+ C1 w. f5 e' u: f0 `. a5 uis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were$ f8 h; G5 m! R. D2 K1 k/ g
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
" J) b6 A4 u7 |: B9 rbankruptcy, they already have debt financing in place.6 E' Z" B4 ?6 g# I5 ]
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain# Y8 m0 |) a+ Z z/ ?2 X1 ~; d
today.* U( ^$ M7 j @# f$ t7 F
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in. i8 {" H0 {# V% P( `
emerging markets have no problem with funding. |
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