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发表于 2011-9-17 13:16
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Current situation0 c2 u+ y5 n W. |# U N9 z: S
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
! v# Y- n$ m7 d/ y# `$ I; O9 fas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
* {9 u6 t" `. fimpose liquidation values.
2 L- K1 b9 N3 I6 T7 W In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In6 u- i1 j7 m" s* l
August, we said a credit shutdown was unlikely – we continue to hold that view.
0 s* M1 \: w0 `" ^) M" V The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension) G/ m! I' Q1 M% `2 M r' @
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets: S( |0 |7 B/ t
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in) f- c% k( J. z9 V. D0 Y
September. Non-financial investment grade is the new safe haven.
4 M$ N7 R7 c! f- m High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%& J& ~! q O8 v
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
5 e# ^1 h+ `! p3 Mbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have+ G: X3 H! H3 l- g# Z& H
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade( w9 Z+ M% A A/ q: Z
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
& }: P* x& u" h7 R8 x4 Z" ?positive for the year-do-date, including high yield.1 ~/ z6 w X$ l6 H" P
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
7 R4 q3 v! @7 X( o2 Nfinding financing.
' h- V/ d( i& A, _. D3 i Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they4 k. {" J6 O% Q) W+ ^$ d# \
were subsequently repriced and placed. In the fall, there will be more deals.! m( }$ V, s5 O/ Z% B! t/ h2 ^
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and" x1 `4 `- ~$ G
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were8 \9 q1 S3 ?0 \9 C
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
Y1 z) B1 V v. \bankruptcy, they already have debt financing in place.
1 p1 q" @: p6 v5 x7 A; X European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain$ W* s" X2 [9 h( o8 I
today.
1 }( }0 ?- g6 t. b& k Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in; E2 P5 H/ l- Q0 y' k) G
emerging markets have no problem with funding. |
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