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发表于 2011-9-17 13:16
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Current situation
, a- W* R! L& ]8 d The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
: m, F. ~8 [7 @as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may, Q' y9 m2 q9 Y
impose liquidation values.
0 l8 B5 [' t+ l& C In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
% @7 @5 I3 @0 z p& SAugust, we said a credit shutdown was unlikely – we continue to hold that view.
- o; n2 g; i0 ^# d4 e$ t The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
4 f" l+ J* m) | g3 M3 @* i' C. Hscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets4 Y$ T( S b2 R/ t) F& l
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in! I! r( a. v) c$ Y4 X1 T1 F
September. Non-financial investment grade is the new safe haven.
0 F0 q: X, @9 B High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%9 t" b7 b! y A; B9 [. K
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $17 l4 g& q$ @% S7 _/ x/ N- u* g$ [2 E
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
+ y& O* w" |5 [, ~$ Raccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
% F) T- L1 i0 k$ k( }4 J/ FCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
# I7 b0 p5 q: f, J, b- ppositive for the year-do-date, including high yield.
5 x3 q& u" U% Y0 @+ ] Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
$ m& V e! I* ]$ A/ U Jfinding financing.
" n9 a# \* {( G- S) g' M Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they1 W z+ t( T9 C+ p, E
were subsequently repriced and placed. In the fall, there will be more deals.$ Y5 r2 i( [; A5 x
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
5 _8 m& a& `6 ?) @is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were% h- Y9 f# h) N' D, K
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
) I7 U% s$ S( Z0 `+ {- n" K, ubankruptcy, they already have debt financing in place.- E& a# n l/ p6 {$ M) O. [- X
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain7 z$ |7 g0 c* R; q& b5 J
today." b9 ?+ T* f$ h4 W
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in( E& E( {+ ?/ J( E) c
emerging markets have no problem with funding. |
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