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发表于 2011-9-17 13:16
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Current situation2 a" }+ s+ t7 s0 b5 s
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
: T$ S2 I- b* Y/ `8 B5 E& j& E! {as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may' x* r/ _- C* d; _2 i
impose liquidation values.$ ]. a* B, ]! f$ t
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
& V8 B; ?$ H5 z: zAugust, we said a credit shutdown was unlikely – we continue to hold that view.5 A Z, o2 e% W( l3 v2 `& A O6 {
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension" y o! K; B4 @( m
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.+ p9 m) i3 }& n. t5 D' |, E8 ]2 I
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A look at credit markets
0 ]2 f. G7 e% f Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
% e# ?& m9 d/ D; ~- E1 w* @September. Non-financial investment grade is the new safe haven.$ U% i6 r' [3 b( {
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
# K: J+ m6 V+ T. Q2 [8 B* vthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
2 b2 d0 w5 t# w3 ubillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
. y8 h8 C( Z. l& x7 `access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
; l1 b! F9 R' X$ F5 J" I7 \6 K% [* lCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are6 ?9 N4 S3 M1 K# W. C
positive for the year-do-date, including high yield.& m2 d+ g( T' S4 k/ D
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
+ K. a/ c4 ^( y' kfinding financing.
3 r& h, [' b" R" M q Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
6 |5 a* }1 Y5 V+ Awere subsequently repriced and placed. In the fall, there will be more deals.% X6 [. G2 T9 a% b1 {
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
5 [8 ?! ` z& v8 n- _/ F6 z3 I nis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were* l6 ]4 m6 O. u* V/ \: t
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
: I, @, v* b: a: Ibankruptcy, they already have debt financing in place.6 d9 R N8 O( A+ n1 Z
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
6 t& Y5 S5 g# }today.
+ }2 Z$ k, D; X4 z5 e Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in9 t e8 A, e% W& f
emerging markets have no problem with funding. |
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