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发表于 2011-9-17 13:16
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Current situation. d* Z. e- _! E) n
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long. v/ c8 r: [ h. }
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
" |5 ]/ t. Q( U7 K6 |6 v n6 wimpose liquidation values.
1 q$ f7 L. D1 E1 C In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
. }3 K# m2 ~$ b* m3 l1 `August, we said a credit shutdown was unlikely – we continue to hold that view., g# g3 j- ?! N- K) s/ X
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
$ }8 J0 k$ ^2 B: C; xscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.* m$ v# L m4 T
( N+ Q1 p' \; hA look at credit markets' t6 X4 E x D
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
( v2 m! I0 L: L' O: @September. Non-financial investment grade is the new safe haven.
( Z/ m3 x% R5 T7 D) C C+ G9 W High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%$ K9 s! h( q2 H- h4 V
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
8 w: Y% \( c6 Zbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have3 B+ J: H2 J0 v5 D& W( u: h
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade. y2 N% x' r8 r0 B! S4 u; U
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
0 f9 F8 u6 r( F0 b9 D+ _positive for the year-do-date, including high yield.
0 e9 G( _8 o; W- m! w Mortgages – There is no funding for new construction, but existing quality properties are having no trouble# i4 B6 e- i% m3 g6 j
finding financing.
8 E- b9 S6 A# G- o Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they, M/ L/ d0 a+ Q7 d% [2 I
were subsequently repriced and placed. In the fall, there will be more deals.& ~7 y9 t1 D) I
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and% N' X' A, E6 T) o5 E$ ^
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were o/ ^5 Z3 @/ r& u% d! `
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for8 j& ], q$ C. [& P" ?: [1 R
bankruptcy, they already have debt financing in place.2 K" U5 H4 r |0 z6 v0 V2 z( ~8 C* B
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain6 ]; i1 e" H f. e
today.- g! @9 Z8 x: B' n/ _
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
1 ^5 @, s$ B1 v/ T; u5 q6 B4 E8 j4 D3 Memerging markets have no problem with funding. |
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