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发表于 2011-9-17 13:16
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Current situation( g* B/ s1 B4 U& b( {
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long- Q1 m7 T2 b: ?2 ]" }- A" s7 G5 O" R
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may" ^7 ?$ @5 N D, _0 ]1 i% H: z3 s
impose liquidation values.
8 z& k3 [7 D3 P& c, o0 J In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
+ \% N+ ~3 X/ r- z- wAugust, we said a credit shutdown was unlikely – we continue to hold that view.
6 _; ]( q4 \3 O8 t, j# e The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension- }( h6 Z( c; H+ ?: U
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.( {' {" q$ l8 t
+ Q& ?: F: E2 w* A+ b
A look at credit markets
! ~; @: A( X3 y- k3 \$ \ Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
7 S# h# U) L! x- r7 eSeptember. Non-financial investment grade is the new safe haven.7 J$ R4 W' |/ @+ Q0 T& Q0 f
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%. w; S5 a9 _6 t' i, T- F. k
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
) M, _3 N* R" Q' R" S! Ibillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
: h' g; K, a$ M: z7 E9 y8 Taccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade9 t* h( O6 I; P A
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
: c6 p4 b8 {; c$ p2 K2 G. Tpositive for the year-do-date, including high yield.$ u4 y1 z1 N" g9 ~# b8 i% l
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble' Q3 X* M. U; G8 U' u V0 v2 I
finding financing.
* l7 T% S- s: F( L Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
8 @& y7 }6 G- Z4 |7 a: Fwere subsequently repriced and placed. In the fall, there will be more deals.5 |, u! C/ N! q' `
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and& q3 W6 o3 E$ p" [# z# _9 _
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were3 C) K& [6 A& Z0 B5 M: `2 f9 }' |: N
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for6 \& t' w# q# q: v7 |% P- x
bankruptcy, they already have debt financing in place.
7 W) d6 |, d: `( U1 F( g+ v& t; X European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
# K4 \3 e+ q! p# s! Vtoday." c: m2 U0 z/ }, W3 b* p, V. C. N
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in. G. ?+ E. J1 \. @. K5 P
emerging markets have no problem with funding. |
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