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发表于 2011-9-17 13:16
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Current situation; t+ u% Q9 d j3 K9 X
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
p: P$ |# o; c8 Zas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may) W% q& U7 n: Z3 D
impose liquidation values.
1 x$ t9 u; u. v In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In4 w1 z0 r: H! }) O, F& N. ~7 p" w8 P
August, we said a credit shutdown was unlikely – we continue to hold that view.* _4 ?& h! N7 u0 u. i2 E+ q
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
6 A& \( m* _, G7 X& Pscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.3 `+ @7 }) n$ l
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A look at credit markets
0 A1 m3 z4 @# ?+ Y" Z. f Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
: ~* U+ D& E+ b/ qSeptember. Non-financial investment grade is the new safe haven.
3 q2 d8 U: d! Y2 @6 B High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%. ?8 o( m' Z6 d- U
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
' ^' m+ V. F4 w8 Gbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have( C0 S6 N/ _: H& }' g' ~" ]
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade& L" X$ w+ j$ I1 z4 l$ v7 b3 u
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are. F/ S7 O6 U! |9 J1 T
positive for the year-do-date, including high yield.
|9 B$ X1 Z. H3 [ Mortgages – There is no funding for new construction, but existing quality properties are having no trouble4 H' K0 W% S" a- r7 s" j: z
finding financing.
$ p0 B$ \% \6 p* ?* |4 R9 ^8 Y Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they# O! r5 s f0 t O
were subsequently repriced and placed. In the fall, there will be more deals." ?; P5 \3 I O5 u1 O0 b* `
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and7 Z" X) d. w8 J! I( U& ~
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were7 ^2 P9 N# H; D5 ^ j0 b
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for4 l2 p' f2 a' p6 w8 ~ }8 M
bankruptcy, they already have debt financing in place./ @# U8 w+ `' T5 b) \% Q0 V% f' Q* A
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain* T5 N7 R6 r, O( F% c0 F( I1 ]
today.
9 B6 `! r0 W9 X7 z! J' ~9 P Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
; N1 m$ Y* R u, h/ V8 n) semerging markets have no problem with funding. |
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