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发表于 2011-9-17 13:16
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Current situation% z3 y9 q- F: x+ l0 n5 i
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
" q) ?: A' g8 [! U! r4 L$ {as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may! x* U( c& x6 k% Y: a
impose liquidation values.7 g, q/ P& }% h! `
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In8 q, u0 {6 t$ m" t$ N' B g/ d/ R
August, we said a credit shutdown was unlikely – we continue to hold that view.
9 Y7 r Q8 v; }5 K' {$ } The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension+ D% ^/ @$ V; F* }( w. y2 k2 Z
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.) G( y. b. ]+ }* i3 A3 ^) q
' }( d2 `7 e- m+ u/ ^A look at credit markets
& B9 @( g- l) u1 [" l+ I/ Y Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in" D# }; @' r' O9 j/ |6 m. Y7 G
September. Non-financial investment grade is the new safe haven.
, g) T# Z; v/ ^& `+ c' s High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
E9 \# X& `" X9 othen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $16 Q; \6 W9 ? H) R! V! W8 m) G
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have; V# B, j) H3 ^& g# w
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade/ j6 m8 N1 o- F/ g) y
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are& U, l+ t" x6 i( k) O- E
positive for the year-do-date, including high yield.
# f0 ?( H o$ _8 p0 d Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
$ s* q$ _- e' G" G. ] m gfinding financing.
3 U8 j, W$ g; @ @, f/ o Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they; ~7 g: R5 f2 H7 I% [
were subsequently repriced and placed. In the fall, there will be more deals.
4 {5 O6 |# g4 I( G2 J Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and3 i$ y4 \0 [1 f- Q. ]
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
7 ]4 r* `# J8 }going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
) j1 p$ o' j, A3 u* ^bankruptcy, they already have debt financing in place.
( I R7 o+ m5 Y0 c2 s2 {) U" C European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain3 J+ e$ g" A6 S& x, }
today.5 n* m# H- i, _1 B- N& F
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
" Z* G3 L! `. F. a+ F1 w3 `& P/ [emerging markets have no problem with funding. |
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