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发表于 2011-9-17 13:16
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Current situation
% }0 c" j, ]1 S( g2 ]% r The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
' M* A8 f, p) s* cas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may1 F. o m+ S1 p( `
impose liquidation values.- y1 P- H5 z: _' o% E. a
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
* R4 l& @. a# T( K. V" ~August, we said a credit shutdown was unlikely – we continue to hold that view.
6 Z8 r; `" C* o' a The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension' d7 @! Y. v+ O) g1 g
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.7 L. X9 \: y3 h
& r$ ]/ p& Q, S2 J8 v$ H' O! ^3 y
A look at credit markets3 W y& |9 a! A! i
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
0 ~- a6 K9 ?! H) bSeptember. Non-financial investment grade is the new safe haven.
$ e4 e, M6 J0 ] High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%& y' B9 F/ K( ~$ t, Y
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
- [7 L+ f+ ^! g/ o6 E" h$ W+ Cbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
: }8 Y6 E# `& _7 Z; P$ E; kaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade- B' ]/ B+ @2 j& j! E
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
( S0 N5 R& x% G2 z: A& L; ipositive for the year-do-date, including high yield.! j7 R3 f. G" r) A/ s8 Q+ e
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble2 s+ s0 R$ o% a: \- {, _
finding financing.
z2 O4 e( l8 F& _8 l( z+ m4 `4 F Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
. N/ S( s7 R2 d/ hwere subsequently repriced and placed. In the fall, there will be more deals.
5 c: N P+ [* g Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
o4 p7 T% Y7 e! Mis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were, v% G3 a2 ?6 ]3 [
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
0 c! W) g3 P. d8 xbankruptcy, they already have debt financing in place.5 D n* g$ Z7 `" C; Z" e, S
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
$ L5 g5 q# i; |4 v C. k! @today.4 S9 Y1 x; r4 }0 k4 _& b, T& _8 r2 T d
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
( L2 W- ^: e! h% u% U. p, Zemerging markets have no problem with funding. |
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