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发表于 2011-9-17 13:16
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Current situation
r& I% @4 m) a+ Q& P" g( p: m) } The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long' i. j; u- S5 j$ k0 t7 a! ^
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
9 E% F" L; b2 ~9 t- Z3 bimpose liquidation values.% g( M4 W2 C! _/ b
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
8 U6 g1 h9 W ^: a' BAugust, we said a credit shutdown was unlikely – we continue to hold that view.- F5 H% h* e- d* P- T
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension L% S1 {; g+ y( K: G8 q8 H
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.1 f# {" |$ v( M9 D& w% H
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A look at credit markets
9 @2 L7 G1 f0 R1 Z0 m# ]# I Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in8 v' Q4 {7 u+ W2 Y& f7 {' @
September. Non-financial investment grade is the new safe haven.
5 W8 J+ `0 ~: ^# X# [0 [3 r High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%' g$ M. ~8 p2 a5 s3 O- X Q
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $19 i( s# T! T$ {5 o2 |5 A
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
$ u5 Q% N3 p( A7 ?$ I6 @access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade+ v( T) O0 T4 ]$ U( X5 s# ~& e! H
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are4 q: t7 ~3 g5 [0 T' }; }5 S
positive for the year-do-date, including high yield.7 j7 L$ j: Z! g r1 Q j9 L
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
) E/ o2 Q& ~: Efinding financing.
* @5 L. L1 n) S+ N/ d Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
- f2 q* B o/ J" C8 i3 Uwere subsequently repriced and placed. In the fall, there will be more deals. T, N% Q0 V5 a2 I
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
5 Z6 J; I0 _4 x c! ~' _3 his now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
2 X' o; k/ u+ P" n- |# o6 _' R+ Sgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for, W# e" l: I2 W' R X
bankruptcy, they already have debt financing in place.
9 a, k/ L( {7 A) u. I9 G European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
; A* E) L5 u0 n# q: Ctoday.3 a% o+ L8 u% a) M4 q0 D
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
; Y: k' y1 ?5 _4 g! pemerging markets have no problem with funding. |
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