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发表于 2011-9-17 13:16
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Current situation
- V2 T% E$ I. r H& @ The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long c, J" O6 Q; J( M0 O1 ?
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
. y8 ?# ]0 {+ a& I/ ^" _impose liquidation values." C8 @" M: U, ~5 ~7 E* m
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
) z! }: M, ]5 K* w4 UAugust, we said a credit shutdown was unlikely – we continue to hold that view.
Y9 H X0 c B0 r% E$ S The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension5 |- o) ?, }* _
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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: l; T" A$ E/ |( n/ K7 O$ |- X0 PA look at credit markets
# R5 I! O4 G+ U9 u0 Z7 N6 G Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in b6 c. O! q3 R
September. Non-financial investment grade is the new safe haven.4 J( H: _( W# r5 V3 T) Z: e8 V
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
" Q6 M$ m& V% M$ a' hthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1- H& \4 ^% w' I
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
! l- [ h8 t( j- _6 ?* B9 k% oaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
- J; X! K) N0 {CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
% M+ _. i3 d6 c7 |) t$ J5 `( p7 zpositive for the year-do-date, including high yield., x i" H3 X( v' E
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
5 t, M3 \) w0 K3 x: ?! Q$ n" r5 pfinding financing.! |: x4 x; T. Z. Z* U& a
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
! V, S {( A3 o; B/ r2 ]' [0 gwere subsequently repriced and placed. In the fall, there will be more deals.
5 o$ t9 L) U5 _7 {. \- I Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and! h% }# {, \" E3 f! e; q
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were" L t; F* U7 z8 w' J
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
) a+ z. ~3 |) Jbankruptcy, they already have debt financing in place.5 [' S4 C' o& `: M
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
" x5 \4 `, N! O8 ytoday.) B% G. n o! h8 M1 ^8 D) e+ F9 B
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in6 ?, x& G9 A% n5 r9 d Q) J# d
emerging markets have no problem with funding. |
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