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发表于 2011-9-17 13:16
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Current situation
" `; ?0 X4 H$ m" `+ G The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long3 f. [; K" r4 x% V8 M% k3 F
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may8 r9 O3 q- ] p
impose liquidation values.
T0 U+ _/ x9 U0 R In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In2 `$ x8 d5 H ? u
August, we said a credit shutdown was unlikely – we continue to hold that view.
" u8 R- F' e. e6 I The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
! h# p4 q. @, Vscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets." j H$ ], d# `8 J; b* |
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A look at credit markets' {. T: ]. N* G7 H7 z( I* ?' ]
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in9 S! E+ @6 n6 f7 j
September. Non-financial investment grade is the new safe haven.
1 ]+ R9 Q# U' `6 b) C9 B9 c# e High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%1 F u0 N' `6 ^0 A5 {# I
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $18 M- Z' s. h: R6 C2 Q5 H$ C4 z
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have8 F7 C9 c( W5 [6 X0 j
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
' I. r1 V; P ~! ~0 VCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are# K8 e* h) P8 V2 }
positive for the year-do-date, including high yield.
' Y; B+ p& a9 Q9 K# ^; | Mortgages – There is no funding for new construction, but existing quality properties are having no trouble5 Z' \, P+ q5 y- e: v
finding financing.
$ @* O3 `1 E* Q) J5 n Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
" l K3 G& h) e) iwere subsequently repriced and placed. In the fall, there will be more deals.# A2 Q! I" b# U# [% R/ K4 x# `
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and z2 s4 } y2 y3 U7 o2 W, S
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
5 A7 o: M e' {& V6 Rgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
& K1 ]! j7 E; ~) r v7 ^bankruptcy, they already have debt financing in place.
# C' v; p, a6 H& F European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain ?. R; e. c! P* q# z: L/ A
today.' Q. F. W- P, `/ J
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in5 k' m) D) N8 T) C0 u5 `
emerging markets have no problem with funding. |
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