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发表于 2011-9-17 13:16
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Current situation8 c: T- _) h2 r, d: H, U o
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
J$ ~2 c( I- R3 g. was funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
5 E9 c3 `, e/ @& @impose liquidation values.5 V6 H. y0 ?7 P$ ^* D6 w" o6 f2 r
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
5 r8 ^# l& E2 v( MAugust, we said a credit shutdown was unlikely – we continue to hold that view.
4 @+ A4 }% y7 `+ Y( K The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension' x/ j5 |2 m0 U" o0 `, Z) c
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
) _5 Q4 H: V1 W# k+ e/ g+ O! f) ~7 F# `$ ^1 t( v- s
A look at credit markets. z% w( L* `7 L9 S! \ @
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in7 @9 [/ J! s% |' |0 x- T3 m7 s
September. Non-financial investment grade is the new safe haven.
8 x- o0 O7 a( G4 z- C; z High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
! ~3 _3 ]& Z. l2 \( x# Q' j* ithen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1/ o. J1 V6 D8 L+ D6 F
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
+ P& k$ U" c" Y7 N4 |access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
' n- y! U8 y. q$ ~CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
( |' ]# }$ |$ R! ]positive for the year-do-date, including high yield.
, T1 O+ j' C' g# D Mortgages – There is no funding for new construction, but existing quality properties are having no trouble5 C; u2 N7 R O5 [1 L
finding financing.
6 U( f' h6 z; E# b Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they5 v' E& O2 m' }' q3 J- L! s/ B
were subsequently repriced and placed. In the fall, there will be more deals.& Y- a0 S h# w- w4 D
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
: b p, r5 j+ A$ l c1 P/ Ois now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
* N7 C0 o7 @7 b, p* ^- Kgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
) y O' p: v+ t8 tbankruptcy, they already have debt financing in place.* m0 k% c/ a( p' z: G7 f- X
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
1 s2 S5 N4 h& u" Y# C. Z( h+ p& Etoday.
* H' d( h# s. I, T Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
: b- s2 A. [; Xemerging markets have no problem with funding. |
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