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发表于 2011-9-17 13:16
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Current situation9 X& [, l/ Z& R3 S, Z2 q5 ^" G
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long, i# S! k* ?/ \$ u ? M- M
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may5 K* C, s( i; i, B b Q/ R
impose liquidation values. t4 k! G: b0 v
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
$ C, g' }- @3 V0 n ^/ xAugust, we said a credit shutdown was unlikely – we continue to hold that view.- }$ E, |9 h+ m
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension& F* T. S C$ n+ z" u
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.' e) l9 o8 P3 _
i8 r6 Z! ?2 J2 B0 q+ U+ z' JA look at credit markets
9 ~6 L2 D7 |& g* m Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
) p3 o1 q, D$ l. l( U, \/ Y. LSeptember. Non-financial investment grade is the new safe haven.
8 e* v! Q8 J' B5 F9 j) S! f- U0 c High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%, F) P# w) E3 T5 I
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
) V! m" A7 n4 C$ ^* h4 M Y1 M) Qbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have t( O! I! k( c$ K* @3 T
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade0 l. e; `2 Z' P5 t# [5 F" }2 Z
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
x, l3 p3 z0 t" j! E7 X2 Apositive for the year-do-date, including high yield.
% m. i. M$ J7 ?+ h& _ Mortgages – There is no funding for new construction, but existing quality properties are having no trouble/ v. t/ r& @ _8 i
finding financing.) d% t# x" x3 w- k% G3 i& w% |" \/ `
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they# d* d7 Z/ I5 B. i/ D$ s
were subsequently repriced and placed. In the fall, there will be more deals.
* y7 `% U4 g: U+ Y. \& E Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
7 e ^4 y8 T4 Eis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were3 ]/ h, B6 h1 `* z9 @6 h9 X
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
5 e# Y: b0 Z C& ?3 wbankruptcy, they already have debt financing in place., [$ y4 @5 _$ T* c. B2 u
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
2 v+ r; p) ?8 o( |3 P& Q6 }today.( `. A: s* I8 e& I2 ]: Y- G
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in; c; V0 b B# }( a$ O6 q4 d
emerging markets have no problem with funding. |
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