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发表于 2011-9-17 13:16
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Current situation4 R1 f# _/ ^( l* M I+ B
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
' f3 C/ E& ~: t2 M+ U. Uas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may$ R w4 y' Q* x, g1 B
impose liquidation values.+ k, Q# Y0 H2 \ W8 y
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In5 r% d$ `- G# x) d3 @
August, we said a credit shutdown was unlikely – we continue to hold that view.
5 {2 C0 P. X+ }9 C4 u+ h! D. W0 W The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension1 ?- b P0 @( e9 ]3 u% h
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.9 B) |; r# f. Y1 x1 s2 i. w2 G
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A look at credit markets/ [- a. x5 f# z* r2 C. Z2 G
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
6 ]+ q. l& }' T+ O' n8 rSeptember. Non-financial investment grade is the new safe haven.
; t9 @4 |; j! C0 w" M High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
& f$ O2 g8 Y7 q1 S% Wthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
h# F7 J ?3 J3 F+ Jbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
& y% z* \% V8 ]. h& H& Xaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
O$ `& M2 E! S* \$ ]" k/ F/ u; ]CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are; U$ {0 t' j8 c5 w) X8 F+ W
positive for the year-do-date, including high yield.
$ K" C; P M6 U6 q Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
$ o4 ?6 `5 W d% A" ?finding financing.
# [- n, d3 J6 s2 B Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they- G# n" B0 C0 V8 S. e* M
were subsequently repriced and placed. In the fall, there will be more deals.
" L" p& N- Y* g Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
5 Y& q, h; ^$ {. Z' S. A! E/ Cis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
3 g$ P. j* }7 x' V7 Rgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for# ^. u) {0 K# ?% p
bankruptcy, they already have debt financing in place.0 Y" K3 P7 z- D& b
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
4 T! g/ H* j5 j, Jtoday.
) o& z& a! q0 Z& v9 ^9 | Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
- g7 v3 E0 S, h6 X& K) Qemerging markets have no problem with funding. |
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