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发表于 2011-9-17 13:16
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Current situation
1 }$ o; E$ ^2 S% _8 s# W The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long: V* I- L* \3 A1 X7 M" H
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
3 c. o6 S/ K* i: x5 P' O# L- b1 |impose liquidation values.
, i. H+ M/ ?$ N6 B$ L0 |" _, `7 E5 W In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
1 y- W8 f+ \/ |; s, r2 tAugust, we said a credit shutdown was unlikely – we continue to hold that view.) `2 a0 V, R/ P# {- \2 u! ?3 G
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension, T- H/ S" O# c' d) k$ N; Z
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets." r1 k; m7 _, e; t* t' w! K! c8 B
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A look at credit markets
( ^( F2 g }$ @" d$ ^ Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
/ ~; r* R7 M$ Y! b7 d' xSeptember. Non-financial investment grade is the new safe haven.) _, X4 L9 f& C' Z
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
" L; Z, `( v3 v$ F l6 Rthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
# K2 v% r5 l& ?0 h+ ^$ r& X ~' F+ bbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have `6 K( T8 B6 u x# ], K) f5 P7 W G
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
: [; q6 O2 y, C" r0 d7 V% Q ]CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are( G4 I% c; c" _8 A5 b& Y, k* C
positive for the year-do-date, including high yield.
9 [# C0 u' q* X6 |3 N% P8 {6 Z Mortgages – There is no funding for new construction, but existing quality properties are having no trouble2 Y+ N; T D4 N
finding financing.# l* J1 S9 X4 x1 u1 L9 K% C. n: L
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
- G( E& N8 f3 q5 z# _- _were subsequently repriced and placed. In the fall, there will be more deals.
% R# @, `; G( T0 B3 w4 c: w3 \ Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
. F: q/ I1 a$ |is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
J5 j4 w" N$ j9 E2 a! z% S% V! }going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for' T/ U6 K3 M4 L9 M3 B7 P
bankruptcy, they already have debt financing in place.* g# D! `" S: M/ U% `
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
* Q, g1 N! t5 s) `today.
, r6 V; o$ X; h% f& N2 \7 i8 i Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
: V$ ^4 \1 G/ f. ^emerging markets have no problem with funding. |
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