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发表于 2011-9-17 13:16
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Current situation. [/ a" w4 L* F+ h0 _+ E* c$ g
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long* Q' T5 |) X7 Q4 U c( ?
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
8 p0 F' q, y! M4 U4 m% i5 Yimpose liquidation values.
6 y# V, `- z: K% u, `; k& H% G0 s In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
: Y ?4 N! A& `9 R' H, G1 [" XAugust, we said a credit shutdown was unlikely – we continue to hold that view.3 `3 G# v; {2 q7 o6 ^# t
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
% D! b: ~& O6 wscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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( r5 i7 Y: f) ^9 FA look at credit markets9 A- n. z* X( R I( C
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in- X5 H4 m" f4 h& }4 c
September. Non-financial investment grade is the new safe haven.
5 y# U2 @; R1 b9 w/ x) z, h High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
N8 L, B/ B% L" E3 Rthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1+ B3 v' ^ G+ I; X% p( p3 L# {
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have: ]6 q& ]& ]+ E& H& Q8 Q& N6 I$ E
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
8 ~- X0 h. M/ U, R b* Z% X8 J( fCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are M0 f/ N) l5 U
positive for the year-do-date, including high yield.
: t5 {9 q* Y, b/ Z; [ Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
; b: k+ Y6 n3 ~6 _finding financing.0 }* z: q, x, m8 f, \# m5 y
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
n& i- q6 F) o' c& E8 L5 ~were subsequently repriced and placed. In the fall, there will be more deals.' y% ^6 Q6 _! T( g
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and# C1 M/ A9 r! O" R( j( G( |0 B
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
' ]" s) p4 a7 \* r5 y3 Igoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
0 W* l2 X1 Q3 q- s5 \. X8 [bankruptcy, they already have debt financing in place.
# i1 a2 t/ b- a( I- E% m8 C European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain; ^! _) u g: a$ A* t
today.+ X: p0 f& M$ i5 Y$ ]7 H6 C& _0 v) I6 _
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
, L/ N; Q5 C# Wemerging markets have no problem with funding. |
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