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发表于 2011-9-17 13:16
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Current situation
2 d" T7 [( J: Z9 S& P The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
+ g$ H. k# V; r1 |- e" s0 Eas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may, A/ I& }9 f6 w0 ]+ b
impose liquidation values.
5 ~' u5 q" i8 n; L! Z In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In B5 Z/ Q7 Y+ c- }, }# h C0 r
August, we said a credit shutdown was unlikely – we continue to hold that view.% h( |8 H$ Z% {+ ? W. x
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
; ?( K, w' \& h! Gscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.: p E3 Z1 l, K6 R" V$ L. d
! x3 I: Q6 h9 W0 |' P; u4 yA look at credit markets* b( n, Y" j; ]' q1 P$ {9 ?
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in0 ^+ A5 K( r3 f& N
September. Non-financial investment grade is the new safe haven.
+ V0 o$ a% I$ f; O! p High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
7 P3 h1 \& i4 b" L* sthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
O; C; w. v/ ]3 s; I% c1 q" Qbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
. g, ]% L! X0 B' Zaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade) @: x X: d: d A6 z! I, C! t: C
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are0 R9 d$ z/ ?* L4 l$ y
positive for the year-do-date, including high yield.
, l3 X( i8 N) ~8 x! G3 x! f Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
; G: z1 T1 y9 J% Lfinding financing. x6 T! x; R, _* T0 h
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they, B/ d2 N$ N/ E( A
were subsequently repriced and placed. In the fall, there will be more deals.
2 @( q) W1 m4 ^3 ?2 f5 w+ ]" V6 W2 [ Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
% C5 w5 y, ]1 [. u' v& ?' W# g3 Cis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were" y- q" [* z2 V* D
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for: g. Y0 x( B8 I+ @7 `
bankruptcy, they already have debt financing in place., z1 W% r% o4 ]( o# d) w
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
- e& ~+ R# k5 ~5 ~6 _5 {9 Otoday.
+ e( T' I. d+ i8 g- M! ^ Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in/ V5 w5 n h: \5 j i" m; U
emerging markets have no problem with funding. |
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