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发表于 2011-9-17 13:16
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Current situation" @5 C t7 H& \- e( h X
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
' u$ i# F, ?3 T( r f/ s# [as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may$ I- M& p( D" s
impose liquidation values./ \1 R) S* F) h$ g
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
' R* i3 r& B: sAugust, we said a credit shutdown was unlikely – we continue to hold that view., c ^/ [( }. Q) }& }" R
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension) @5 O$ l3 P: a4 B- T7 G$ P
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
y& h! u% r- S8 s- g3 g6 Q: r+ V. Z, T9 G
A look at credit markets! x0 n- ~+ u$ _6 M2 n
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
. ?9 C% R+ P" O, ASeptember. Non-financial investment grade is the new safe haven.
( D$ i6 _/ t4 S- A4 b- x8 I High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
6 s( j6 U( O' U2 S ]then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
2 F% m$ l# R' F# ~6 abillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have, @4 J }3 ~4 u) U
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade0 W5 A# F& ^* o$ |
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are9 j9 L/ C/ \! ^- A; n9 _% W9 D
positive for the year-do-date, including high yield.! k0 p0 ?/ C% u! x. a0 f
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
/ \7 \! _& L8 H; p8 E* bfinding financing., e E7 X v/ w# ^- q6 |: B; b$ y$ L
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
( n R: n; B4 J: @! [were subsequently repriced and placed. In the fall, there will be more deals.- ?# Q* f$ ]- _( K# F9 Q( p
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and: I$ W7 o% Y. |9 @" g8 ]6 U4 v) _
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were& v0 W: b. {5 v
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for7 C; K* u& P7 d2 K* V
bankruptcy, they already have debt financing in place.
/ @( F+ `* i: l European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
% ^. c A4 F. p$ F* jtoday.
# C& Y! Q/ S/ G. x: [2 `( R5 u8 | Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
8 q! R4 C# ?% t n/ pemerging markets have no problem with funding. |
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