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发表于 2011-9-17 13:16
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Current situation
! T5 Q: I( D6 A2 O, t9 W# a5 C The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
4 G3 g/ N' |3 [as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may; b5 D( {, Z: {! S' r" r' G5 K
impose liquidation values.
* a" X9 _* e: G In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In( ~ y4 D. o* B8 z* E! e
August, we said a credit shutdown was unlikely – we continue to hold that view.' j# n( q) X1 L- F2 D/ m- Q$ ~
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension) A; ?9 E) d1 e
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets. Y# `* K3 e0 |, O
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A look at credit markets7 A8 w- s$ q1 Z( d3 C. [
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in; J/ M8 ~3 Z/ E* }& ^
September. Non-financial investment grade is the new safe haven.
( ]9 S4 y+ r+ B# @% P High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%2 ?" A) p6 [7 g8 J# w7 B. P
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
- E3 }: c" S$ r3 t) tbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
& D- x# u' R5 S& r9 E, ]access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
7 \1 V9 p E$ C6 ]' eCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
) _% i( u1 W/ @: |# npositive for the year-do-date, including high yield.
/ r9 ?; U! A6 B Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
! |9 x: N: U* u4 N% }5 H6 jfinding financing.6 ], z$ d" j" V# r& g3 L
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they" A$ L5 k3 U, x, s* N4 u+ f+ ]6 K
were subsequently repriced and placed. In the fall, there will be more deals.
5 A; _5 i0 l' F' k6 a1 D Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and3 K. a+ J' x% f$ o4 H. b
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were5 x8 H. l6 q4 E% l
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for0 x0 D, h3 u# q
bankruptcy, they already have debt financing in place.
2 l2 M+ V# c0 o) M" }! B European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
- U* k: q9 O+ Z& o- o5 Stoday.1 i8 j* N$ s8 X
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in- @ k. l5 g/ I( q" z1 \
emerging markets have no problem with funding. |
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