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发表于 2011-9-17 13:16
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Current situation u, _) x: X$ f8 [; D/ z
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
; a1 u/ w$ c& I. s& n1 G( Was funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may6 N6 ~, Z$ p. v' z& N3 V
impose liquidation values. D6 V: j( e8 ~2 r4 v
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In" e: Q/ O A& d7 p9 X, B
August, we said a credit shutdown was unlikely – we continue to hold that view.
3 R5 D- c. c" h5 h% H/ _& Y The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension; _) Y" A x# H3 H6 a
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets./ d* Z+ a' F* g' Z6 U) ?# o* i
( E4 Z) J2 a6 U+ ?( ?
A look at credit markets
5 m# C& l* a7 s/ y4 G Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
: b0 P) M! r, h; R# r/ ^9 xSeptember. Non-financial investment grade is the new safe haven.3 q) ^: h. V8 f6 W
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
5 i! H M6 |* {4 `- ethen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1$ d4 U6 X* L# E% S7 J2 T F5 g
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
) m0 q8 ^" r. n/ n6 h/ _access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade: ], T- E0 t+ i& }
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
* g1 i/ n0 a$ M- ]positive for the year-do-date, including high yield.
/ e( K/ Q3 X0 {8 n! j& I2 v Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
. Q' O! l6 j' ]0 v2 E4 d' ~# C f& ifinding financing.
, n0 K; M9 A2 P3 Q$ l: N* t4 l. v- U5 M Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
: o7 x1 m8 Q6 P% D5 F. ]. cwere subsequently repriced and placed. In the fall, there will be more deals.- E0 i9 J$ D& r* Y
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and' V0 C6 U1 \$ `4 C1 Y: f0 n
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were: d1 S/ l" z; H* t% j6 A( L
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for% E# h% v/ r( I5 a
bankruptcy, they already have debt financing in place.
$ @4 K0 G- J5 M" ] European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
" t& q! J7 a. M: [; [today.
: O$ x& [5 H5 f- r6 v Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
6 l3 q6 b: v! [ demerging markets have no problem with funding. |
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