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发表于 2011-9-17 13:16
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Current situation1 z6 ?2 j) o2 R8 u6 I& k
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
( h$ Y1 Q' ^' i7 o% _as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
5 C0 l6 Y; w) }* J. x$ ~) limpose liquidation values.
- C+ `8 U* K) `/ y8 T7 k In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In9 [. `) ~: \( v! t% I. _
August, we said a credit shutdown was unlikely – we continue to hold that view.
C! |$ w3 S& z7 i( f. i The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
9 z9 H, {' ]5 p) v1 G6 x" N. }scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.0 ~$ |* i5 Y# G1 ^2 n
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A look at credit markets, N2 [2 u& M7 a7 e, J+ V
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in% [* ~/ u. r4 h$ }: u
September. Non-financial investment grade is the new safe haven.
6 e, c" D$ D( E, Y, W High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%9 n7 j& L, ]0 M' d5 C7 O6 l6 @4 e
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
( U- D/ n6 m7 g; d& H( r$ Bbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have7 P; D- k& J) N7 X$ ~/ N) h
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade& j- o& j& B; `+ Y- u i7 _2 S
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are1 r- o9 C) v! x8 H& g- ?$ z% I
positive for the year-do-date, including high yield." l7 M+ N* l( P# G) d
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble! A1 W) ]: S# q$ m4 n4 L
finding financing. V P7 |) F. ?, q# ^, d9 j; \
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they, B( {0 C, W- s2 {; d4 w
were subsequently repriced and placed. In the fall, there will be more deals.
! }1 \( m0 W% M( @) l Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
; }# j- J5 i3 l3 d b. j# X* I# wis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
1 |! F' D# g6 ]$ a* Y5 T# A+ y6 ~going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
1 w! [9 `# T0 K3 k! f2 u4 R0 Zbankruptcy, they already have debt financing in place.
/ `. M6 ^1 [. t4 j6 z6 [% r$ t* B European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain2 L5 g. k% U( P. D# y3 j
today.
) v* } y1 @2 ~. y5 G9 H Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
( I6 V- [5 q5 o- \( m: _/ Eemerging markets have no problem with funding. |
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