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发表于 2011-9-17 13:16
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Current situation
+ j6 g! z7 A- M2 W The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long7 D& X. [9 D6 z H0 J+ b7 z8 j* r. |
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may$ J- G# y7 g2 `$ k+ `0 R
impose liquidation values.- C7 ?; h. p: u i; ^ g
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
) e% W! p! U8 g# H# V* \$ C0 }August, we said a credit shutdown was unlikely – we continue to hold that view.( @& P- z; k4 W) j
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension/ F. ^6 q1 t% q2 i1 R# L/ H B
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.( b1 d# w6 O' p
, r9 Q; u3 [9 e' h, N! cA look at credit markets) Q C ]$ {+ A2 ^) v) y
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
: K! t+ P* m+ w7 B3 F! s; `' S DSeptember. Non-financial investment grade is the new safe haven.
: W, `4 b6 K n1 G/ n5 ` High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%& H b5 L2 h8 Y; m# e+ r: d! ?) g
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
$ g6 [) N. T6 Kbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
5 U7 a1 U8 R: ]access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
; |# Z; G6 U# v" h1 ACCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
- {* @ x7 m6 Z7 i2 M3 m hpositive for the year-do-date, including high yield.
/ q, {1 L% N: y9 P7 p1 [: i Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
" n0 a+ _ H* f9 W& \% N( tfinding financing.8 ]4 |# n6 L( f; Y. K
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
0 e8 `' ^+ t. Y4 b; }were subsequently repriced and placed. In the fall, there will be more deals.* D, u5 r. _! t G% i
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and7 y/ ?# g: i( q; Z
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
; z( L6 T: e+ P, T, zgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for$ ]# z0 f: p3 T( q8 X
bankruptcy, they already have debt financing in place.! m; O F5 x" B0 O- z
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
) h6 `$ M/ _. B2 }today.
/ C8 |, H, y# J0 g# a" W* ?% G1 b Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in, j: ]9 _2 C- q5 Z
emerging markets have no problem with funding. |
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