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发表于 2011-9-17 13:16
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Current situation, q5 F' P! A. b$ @# q. @- p& B
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long4 [( s6 l; [( v" S4 A* b5 N# {; {
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may: B/ d+ V0 U9 @' Z0 \
impose liquidation values.
9 C8 J- \5 D0 b3 M4 ~. g3 W4 ` In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In5 E5 G: P) y! _" A
August, we said a credit shutdown was unlikely – we continue to hold that view.
* q0 w Z# x9 Y The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension# q; k7 _5 i7 |( r5 ^
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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" d( j3 w) Y* z& Q% C$ GA look at credit markets( ^. A4 o# C3 ^# ^. \4 ^
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in% T" K- r1 x& m; p) a4 U' k
September. Non-financial investment grade is the new safe haven.* v! h; E9 r1 i. t5 ?7 A
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%/ M/ } j; O) o. x+ u( E. U3 _
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $13 {* M$ w' ~+ f* Z
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have9 o' W2 C$ `: L' q& s" w; n
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade9 A. V+ K. P" k' }. ?4 X5 s
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are5 r& H8 N2 s0 a; z6 L
positive for the year-do-date, including high yield.
) Q6 W4 _) ^) g3 D0 |! X Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
" h w! [5 j- u- d4 J1 z/ @) Mfinding financing.+ m# G4 |* _8 X5 M) U
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they; S8 y7 r) P: j- ^% ~, b
were subsequently repriced and placed. In the fall, there will be more deals.
* M, B2 H) f; Z1 S; L Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and5 w$ B& p7 S' J: J
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were( v( q4 H; ^7 j1 Q
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
& @$ k$ p2 u) j5 x- f9 r- qbankruptcy, they already have debt financing in place.
* a4 Z* Y9 a2 X# M) M European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain% Z5 a3 U4 m. _, t# |% h* ^
today.
" P' e U0 S+ v7 @/ ?5 C- K Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in/ j, U# J- S8 K/ m
emerging markets have no problem with funding. |
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