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发表于 2011-9-17 13:16
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Current situation
& K Y- k5 W5 D8 ?9 @8 q2 { The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
9 j' j6 n* F; Z4 p* c7 L2 Gas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may4 e$ i& G9 a3 }; N2 Z
impose liquidation values.2 u+ S- K: e; n) P( m: e
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
+ Z: s, F4 s2 l+ `8 C8 d4 hAugust, we said a credit shutdown was unlikely – we continue to hold that view.
( f/ n1 \/ {+ s4 W The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension+ ^! V7 \0 M ]0 }& ~! x& e+ u* F% l
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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+ ^/ ?3 \4 e. {# t J; ~8 eA look at credit markets: E" a3 O1 q3 j5 K% q0 R4 T
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
! z. V9 ~ Q; {September. Non-financial investment grade is the new safe haven.- y7 U3 m/ G; O8 i) I( m) ^
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%; P! d$ F& W" T7 `: V
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
+ Q. l+ h" |# O) bbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
' u/ A( r* {" Z& ^/ M c2 zaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade/ d. w/ f" M$ y9 |
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are e. }/ S* C6 h# A; e3 x
positive for the year-do-date, including high yield.
1 ~- U) ` {4 W3 q% R: I8 Y; K Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
, J' b9 }9 r/ A7 A ffinding financing.
. ^; j8 N& h# o3 B, {; | Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
0 D6 B5 V3 d& b+ ~8 i% g A3 A3 fwere subsequently repriced and placed. In the fall, there will be more deals.
6 J& [# O$ g: }; U* z Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and- ^% N7 | Q5 z+ R
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were4 M$ q: ] i5 U; w+ i N
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
& ^$ c2 t0 u* O/ f7 s# D; E8 kbankruptcy, they already have debt financing in place.
: b2 ~! i6 k# e! r7 @ European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain! _, y g; X1 B0 S/ U( j
today.2 P% S/ u I! f) @/ V
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
+ A1 J' h$ A" F {! }( V% Vemerging markets have no problem with funding. |
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