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发表于 2011-9-17 13:16
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Current situation
- ~' |' z% S) Q6 L) @ The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long, T/ o% b8 T- s. X/ D
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
% c$ O; G: S8 I* bimpose liquidation values.1 ^7 y$ q+ d7 b: Y; u! D$ R
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In7 C$ o2 e1 M! {
August, we said a credit shutdown was unlikely – we continue to hold that view.( z5 y8 O% z/ W: q& k6 |: ~
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
3 I8 P8 e- d# I2 g# G$ E* Tscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.3 p$ @- k+ i* Q" u
# P, j6 g# O5 ~' f2 P. WA look at credit markets
+ y( P+ F7 ?" C3 E2 K/ j+ V7 ^& _ Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in. x! Q M: x. b7 O
September. Non-financial investment grade is the new safe haven.
- c% E ~# ^, ^5 V2 Y' c) |1 c High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
: z* B. E! U! g+ R: uthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
6 w+ ^% j% {6 Ybillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have. Z* T( @( L/ ?% V
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
w% f0 q: K4 F4 n; ~( }/ kCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are+ l2 l7 I6 }; s3 U
positive for the year-do-date, including high yield.
* l: z% b4 g- J. W0 X5 Y) y; z Mortgages – There is no funding for new construction, but existing quality properties are having no trouble" M- Y& T, z& p5 O5 Y* w
finding financing./ H6 V, _) P$ f( }
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
/ M5 B5 V* j- ^were subsequently repriced and placed. In the fall, there will be more deals.3 J1 v) a# R) x
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
- R( K! d6 l4 X# D- I/ C0 wis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
, s4 ^/ S; K5 |4 ~' c. X0 ]7 o, Qgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for) |6 Y4 t7 s1 f' R# s4 v
bankruptcy, they already have debt financing in place.5 ]+ C6 v3 P1 M$ k+ h* s
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
* u- J( i( G9 Z% ztoday.
% W5 }' G6 e7 Z) t1 G Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
0 X: z |* T7 ^7 kemerging markets have no problem with funding. |
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