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发表于 2011-9-17 13:16
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Current situation
; H' G, Z' |# |3 h& E The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
0 Y( g" F6 w& G( s9 Gas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
8 L) o7 N' l' gimpose liquidation values.* B; I4 y5 e2 X1 w/ C# v5 K
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In! K5 K3 C: A$ y2 p$ d" ^* S
August, we said a credit shutdown was unlikely – we continue to hold that view.
7 w( X K# b0 t/ X6 B, G8 a The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension: G x0 [$ v. Q( w% V
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets
: v9 i( o9 D5 z# @8 A' V# r- H Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in3 Z/ |- M H# C% z1 }2 T5 l
September. Non-financial investment grade is the new safe haven.
9 p, o: n3 j/ r0 P- w, l; e High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
1 }" P( q! y% Z$ R' s4 l4 f5 lthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1 H# T& f: b# |5 U
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
0 R% I- C4 i k# u. eaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade! U( Z; C, K! N+ F
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are; N3 N9 R) ~0 y+ e
positive for the year-do-date, including high yield.
# c6 X- T& U) F3 o& x* S( \ Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
1 s/ n3 `8 B; x6 s6 Afinding financing.9 K- u% N- i2 |! b! P* \
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they# A9 R' ]2 n; |
were subsequently repriced and placed. In the fall, there will be more deals.
2 s2 |5 G# v8 J# h6 v Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
/ U4 k0 q: Z B3 C) v8 C( m \is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
Q2 q0 Z$ `; F; {/ cgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
* F; U: n$ F1 |8 ]1 ^2 e* dbankruptcy, they already have debt financing in place.
5 h, Y8 M x0 z1 _ s European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
0 S J- c. ?2 a* T& C( g; T7 Otoday.
4 z5 r0 X" p* P Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in- w) C' b6 B2 N( `. r1 t; i, _0 U
emerging markets have no problem with funding. |
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