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发表于 2011-9-17 13:16
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Current situation
$ B" g4 M) @0 d7 i+ p) H$ G% y# d The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
7 D& e7 C% t2 T0 das funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may+ O, k! T z2 R3 @# D0 S+ L
impose liquidation values.
: A2 R# [0 s) Q$ O7 T$ t In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In( Y* g! L* p$ j$ Q* h8 l- q: o
August, we said a credit shutdown was unlikely – we continue to hold that view. K+ Z, S) o D# Y
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
! H5 N# D! M$ |scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.$ [' N5 p/ D8 V; _: ^4 k, ]2 U
0 K! T. ?, \9 [9 Y/ C: EA look at credit markets
# m: p" Q2 d0 i: f. I; W% H! C Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in0 T3 c1 _( [6 L# J3 O9 C
September. Non-financial investment grade is the new safe haven.4 f$ E; v% l' r% z W' w4 f
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
/ K0 W; M( F# r; z8 |) ?+ ?! p1 R ^then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $16 I& M# K1 d, ? v5 u' E, _3 V
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have& d, y% M6 w" S, V
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade: A/ Z5 w& H5 W
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
# Y$ Q6 n, K9 X. Lpositive for the year-do-date, including high yield.
0 q$ r6 p) k" ]# r- O' R Mortgages – There is no funding for new construction, but existing quality properties are having no trouble4 _% V% a6 H5 |
finding financing.
* N4 I& p, q$ i+ h% E- H Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they: i; W# _( g& v) o8 d0 m- x7 \/ `
were subsequently repriced and placed. In the fall, there will be more deals.2 E- n: p# B0 c" `
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
# T* N6 t: C- {& z9 \is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were- {1 R0 R: W+ R3 x0 a% F
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for X2 R) u. W1 z! U0 w8 K
bankruptcy, they already have debt financing in place.
! c1 {$ {% n1 ^' U& `0 V: J* | European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
# q7 o1 Y& g. r, K7 z L/ Ytoday.
6 j4 S$ K ^1 g- m- p, M; e G Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
0 t# |% I/ R5 @3 s2 w% R/ N! {0 jemerging markets have no problem with funding. |
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