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发表于 2011-9-17 13:16
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Current situation; D" ?& n7 [+ a4 S
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
% c9 R) \+ G5 ]; Z% N5 j2 Sas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
6 z0 D& o+ j, R' H3 v* `impose liquidation values.: F' L2 V8 J9 i0 q
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
4 }8 Q8 y' j n) NAugust, we said a credit shutdown was unlikely – we continue to hold that view.5 Z1 _ {& n% h2 I+ J
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension% p% `" ^9 W' z
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.9 x% |( N* r& U. A, w
k F! A- G6 ^8 f7 w2 ZA look at credit markets
t8 J% F7 e# [( e' W" i Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
$ E& O6 u3 M) bSeptember. Non-financial investment grade is the new safe haven.
* W: S1 m8 r1 c4 T1 r High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
; F P6 R! M0 t/ p5 X9 ^then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
& Y1 g2 }0 c; a5 ~0 Hbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
7 d' w$ L- Q( Eaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
. q- K ]% p, q. W7 h% y9 j' hCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are6 J* b1 _5 M- X8 P+ H8 ?. V0 T
positive for the year-do-date, including high yield.
; u# C. H$ u9 _3 t" X Mortgages – There is no funding for new construction, but existing quality properties are having no trouble5 g( r) d/ B( X9 V* q0 ]/ E' O5 z4 @1 Z
finding financing., D0 N! |; @. P- _ C6 t) ~
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
, A- z+ [" S nwere subsequently repriced and placed. In the fall, there will be more deals.
6 |, [/ ^6 M1 B( B/ p7 ^ Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
2 \! o9 k, L8 B) S% ]( D: M& Cis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
/ |. ?) o7 I8 D0 O8 Ygoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for9 e* y1 C& K; Y
bankruptcy, they already have debt financing in place.' F" v {7 Z- y+ Z: b
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
. |( y$ r- S; n) Z" p. Xtoday.3 W1 J- m( i7 W9 z
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in' N" L8 r9 v- B8 t
emerging markets have no problem with funding. |
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