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发表于 2011-9-17 13:16
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Current situation+ w) d$ a) _# [' F' H
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
/ d5 s) u# ^8 Q. Das funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may, C) ` c9 k% E' j( p
impose liquidation values.6 }. Z4 M, k* o m; w' g
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In/ a! [: I2 |, N8 b; n. v, X
August, we said a credit shutdown was unlikely – we continue to hold that view.
) h7 T' z- F4 n, c! V The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
- m: w; \1 y* [/ pscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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3 S; O( q2 b4 ~. d: F' P0 e8 \A look at credit markets
! I i2 m9 i7 ^" S& z Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in* N r! h! J" u; `2 x V( O, F
September. Non-financial investment grade is the new safe haven.# E: w2 B; T. p( N( \# X& L$ F. V
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%# j$ L1 y5 \, Z* E: Z
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
6 u1 s) `0 Y3 }billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
% `) p0 A/ Y8 ~' {access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade f; P1 Y- z& o3 f9 m$ m
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
6 y7 S8 a& ]! D" i* i' Dpositive for the year-do-date, including high yield., x2 ^/ ]8 s, G% @. E: ^% `$ @9 ?2 ?
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
2 ^! Y* Z4 h) q2 @7 zfinding financing. P% H# Z" c9 y6 P6 E& d! t
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
# I8 x2 e0 S+ W9 o% g# w+ f+ ?were subsequently repriced and placed. In the fall, there will be more deals.: u2 U. a' B. n0 m& s
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and, x. j6 Z& W+ N3 i& H4 d9 p
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were: ?7 r0 z) V& ^: A% f- P
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for) _# U- `+ B1 H! f( p
bankruptcy, they already have debt financing in place.
0 g2 B! H& n- C European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
7 J) W! u& \2 d6 M/ Itoday.
' m+ T Y1 k- e) m2 T, H1 Y9 s/ M, X, ~ Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in' o2 `1 T/ M. N/ x7 n' c2 P2 L
emerging markets have no problem with funding. |
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