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发表于 2011-9-17 13:16
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Current situation' I' g; b3 r* [3 o& j6 O
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
8 z7 ~6 e9 h0 c, F4 E- Xas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may. f8 g: \/ k4 r: n1 B
impose liquidation values.* u) m# F) k; J [- r" P- V
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In- N- L- [6 M, u$ b1 `8 z
August, we said a credit shutdown was unlikely – we continue to hold that view.
; }4 m0 Q! Z3 I3 e% t1 M The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
1 C" } f! p; n T) X: m9 Fscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets./ O& p5 ?+ E, X1 y4 A6 C
4 D& x$ q! F% v* V* Y, z: OA look at credit markets
" O' f5 h& Y j% }7 y# o Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
( {: I7 n# S: ~3 z" D6 h" k+ T4 v8 USeptember. Non-financial investment grade is the new safe haven.
6 J2 [+ y' Z7 ~/ t; X High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%; w+ `. _! W! ]0 h) _& {
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
5 _" o) a% v# Y' v( `billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
/ j2 Q1 f! r( t; [5 Saccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade$ N0 B' q- Z0 w1 }" r j& ]' h, Q
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
! V! B% }% ?3 B4 l( t9 l0 X. C- ^positive for the year-do-date, including high yield.& B' {# M0 [% E/ x
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
" c: L# Z+ k4 E3 X. gfinding financing.
# z, ?' m2 j. B( a% W Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they9 \/ E6 B5 }( D B3 O) k6 _
were subsequently repriced and placed. In the fall, there will be more deals.* ~8 }, r) {: J! j
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
* G" C/ t; G. M7 K2 _6 x+ Dis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
1 m: n( w. a9 Jgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for2 v) R+ B& p/ C, ^4 `6 v$ G3 N4 w
bankruptcy, they already have debt financing in place.
9 s# @, N9 y# J8 r5 g; d European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain" |2 b: |# L c' u4 G2 R( ^- M4 w
today.
- g; D) F6 \4 s+ I; C$ P Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in3 u, H0 ]# I9 {9 v* L
emerging markets have no problem with funding. |
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