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发表于 2011-9-17 13:16
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Current situation' R1 I+ H, c& O, l& A# k
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
! ~7 z7 Z( M6 g8 D5 Das funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may. Y4 c6 x. h/ H) F- B% L
impose liquidation values.) l7 O b Z- c4 `1 Y7 E- c% a
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
& [( s! g, v; p) {August, we said a credit shutdown was unlikely – we continue to hold that view.( W" B! Z% a% K2 F. [
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
G% O8 A, ^' z; [scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.8 Z3 Z) s. R: R, T& p
2 J& y; s y, y& k4 ]2 M, kA look at credit markets
" F$ d. P6 [8 I8 }% u Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
+ F+ }& `: U' j4 XSeptember. Non-financial investment grade is the new safe haven.
% s- n$ U2 R0 }0 D+ h High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%$ i/ p$ ]+ F5 _ i, r, _
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1+ \- O' I6 I+ O' J) R( E
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have; z: ?. m! P" q4 g$ Q: s T
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade# ~" n7 H# |* ^4 K: [6 G
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
0 z5 {" k! r; G1 Cpositive for the year-do-date, including high yield.. r6 S' ]0 X' N' P; S
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
/ \% d: v+ p7 y$ o0 Q- Vfinding financing.# _0 U4 X, I+ T5 W5 u ?( ?
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they/ n& s: v. Z8 b# O; J2 k
were subsequently repriced and placed. In the fall, there will be more deals.
1 d; r( J( a; C2 l$ P Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and9 p1 G6 e9 C: \& d
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
0 e: Y4 ?' j, agoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for5 f0 O% _4 q7 t5 U4 x9 ~$ N, H
bankruptcy, they already have debt financing in place./ [) Z) L% e e v6 }1 b
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
. R/ c! q( O# d2 l4 e& @today.
3 \- H+ u1 v& ?& ^0 u) P Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in3 }, [, T! B% I
emerging markets have no problem with funding. |
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