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发表于 2011-9-17 13:16
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Current situation% Y. P8 z- X/ J N' ~7 e$ b' p
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
/ U! n$ l; W& j; @: W" P% F" Eas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
4 f3 e# f9 g3 m/ b) simpose liquidation values.- D+ n* m' j% F8 m7 Z6 S7 ?6 m
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
8 p0 M; z& Y- B: mAugust, we said a credit shutdown was unlikely – we continue to hold that view.
; A. H: z! K7 i6 t0 B The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
0 D. B+ s" H, c" ]/ }- k# d$ n+ E7 Uscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.& C% z) N1 [; i
. d" P- ? I5 v! U, g6 u _5 aA look at credit markets0 ]( s- J# Z, j% D0 w
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in" I, B: D: m& N
September. Non-financial investment grade is the new safe haven.! w9 B& p: J/ c: B& S4 V$ y" U
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%" K3 L) H, W/ m3 a9 |( e
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
! `0 ~& z1 _$ e' G' D# t' Abillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have" d% ]1 F$ v/ J& V% b# Z7 ~
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade A+ Z/ ~/ Z, a6 z2 |7 S% D/ Q
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are5 I+ |4 Z3 H0 |2 e: u0 e1 Y
positive for the year-do-date, including high yield.
8 |( |' g" i' s2 [ Mortgages – There is no funding for new construction, but existing quality properties are having no trouble" g8 ]# ] M3 t
finding financing.
$ \+ x" T9 F0 j' a6 L, q ? Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they. p! U' k; M/ B ^5 Y5 Z8 O" S# R
were subsequently repriced and placed. In the fall, there will be more deals.6 J1 Z' E; q4 |$ P: _
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and6 Q! u# L# u7 P5 M& n
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were" a6 ]# w8 s3 x1 Y
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
9 E# D( R7 i9 Y" nbankruptcy, they already have debt financing in place.
2 _1 ^/ n" e* v3 r European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
. r5 s2 k$ f C/ a6 A1 t% Vtoday.
5 ^! X& ?( g) Z1 b) x9 a Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in5 t/ ~( Q; H5 L4 c0 C/ a
emerging markets have no problem with funding. |
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