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发表于 2011-9-17 13:16
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Current situation. ]( j1 I' N$ v0 U, l) \
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long3 ]) ]. H. V# D
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may9 P# F0 L$ Q0 Q5 v# Z
impose liquidation values.4 [" J% X# Z$ L
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In& n0 _1 ]2 y" }
August, we said a credit shutdown was unlikely – we continue to hold that view.
" p' G5 [3 {2 \ The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension# [* I) x/ Q, Q+ S4 K, h- j6 A
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.0 ]/ f: V2 z# Q7 B7 |& C; O- ~
8 n4 }6 R n. f8 s5 ], KA look at credit markets
$ I) A5 U9 l( x/ ?* w# U0 S7 M# Y Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
/ L, `% j$ J% V1 \( R; A0 SSeptember. Non-financial investment grade is the new safe haven.
( j. ]5 W! Z0 h; N! @* [ High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
5 J! L4 w7 i) J* Lthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1% f E4 _- V8 ]; K
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have+ ?; T- ~3 S9 d0 Q
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
) |6 s# N# |. a% D/ y4 KCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
# j9 K4 P+ m9 {5 Ipositive for the year-do-date, including high yield.
, y; o6 o0 r7 }1 q$ j2 C; m6 { Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
6 E! u4 j% h e% S3 E8 q/ Xfinding financing.
5 ?+ q) U- u& d/ z& l7 F& ? Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they/ `* W7 k0 E& U3 c5 E
were subsequently repriced and placed. In the fall, there will be more deals.! O" G9 T8 I$ `! g9 W2 e
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
9 I' f9 T% n9 u; G8 h. R& ^is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were! M6 O' r ]& w* A: w# K
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
0 |5 D# m$ {. [8 f: |9 bbankruptcy, they already have debt financing in place.
7 z# _' O( S3 @ European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
3 e$ I" M2 y; q, u' I- K- Q Gtoday.
3 w2 R5 ^8 C7 w- [6 F Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
6 D6 y7 E5 o; u$ p' k9 w d0 Oemerging markets have no problem with funding. |
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