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发表于 2011-9-17 13:16
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Current situation6 G1 y7 a1 m- B9 F# T( r% p. {6 `
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
4 q/ ^0 d; S5 M" G& {2 [; Uas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may% i! j% I* L# ?% v, M
impose liquidation values.
7 k& A3 p9 ?) }; d7 U* n. ` In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
+ Y+ n0 p' G. Y4 S) s! WAugust, we said a credit shutdown was unlikely – we continue to hold that view.
3 \: W6 L) K8 w9 [! S The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension! |8 L. J' g9 ^
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets
+ r3 [) C0 K/ ]/ K* w w Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in/ Z3 E! Z" j4 n# s
September. Non-financial investment grade is the new safe haven.* f5 b& y# v6 |# C" ]0 F
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%! V8 a' w0 O7 k' M8 i
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1& o z) H! A1 ~& C7 I2 d0 a( K
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
1 ^3 m! v4 q8 X6 U& Waccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
5 N4 g. S' m; F2 j. U2 D* iCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
* I- S( j% v5 ~positive for the year-do-date, including high yield.
- B) w% n2 M' {) b# N; B" I Mortgages – There is no funding for new construction, but existing quality properties are having no trouble: d5 g: ]- S' x2 z! f
finding financing.
9 X: ?0 S+ C1 B: |1 @0 A. r Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they! Z% w1 ^" \0 G5 s
were subsequently repriced and placed. In the fall, there will be more deals.
* s7 N$ h8 u7 k% j8 `' ~# o) [ Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
# x, N4 p; V9 }2 @is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
% ^, G$ `0 ?* t: m( M3 Ogoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for3 X# r* r ^1 {
bankruptcy, they already have debt financing in place.
* M$ W0 p# W5 S European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
9 P, i. A& P0 B' Gtoday.
/ u- R& P* q$ [; |: J Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
( g$ ?6 Z' |4 }% p' p: Jemerging markets have no problem with funding. |
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