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发表于 2011-9-17 13:16
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Current situation9 v0 U5 U7 v; @7 Y I$ H- K) C" h
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long, I9 ]0 _8 \! ~* v& ~
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may- Q ]. \+ F, w$ }
impose liquidation values.
. K& @4 K5 A" ?1 y In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
% I' P5 U& e" P+ x* U% ]/ xAugust, we said a credit shutdown was unlikely – we continue to hold that view.& Y* l* S" H+ t* P+ z/ k5 @
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension6 {* W+ u% F: i' y/ ^0 x" D; p
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets
) Z- t8 v, B$ h) S Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
3 z3 v9 R$ d p% A4 cSeptember. Non-financial investment grade is the new safe haven., v$ ^6 p( t/ s8 u7 m d6 A
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%% h1 g% b5 ^; Q, o
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1 u9 A; P& ?0 T8 ^* q
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
7 w0 C' r6 Y1 i0 L# f% W' Zaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
/ P8 c0 D5 Z, E: Y8 ^1 rCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
1 m% m3 Y; ^3 K. o; }positive for the year-do-date, including high yield.
8 y4 h9 a" ^; O1 O* H Mortgages – There is no funding for new construction, but existing quality properties are having no trouble+ _" ^ g& L* D: W* q$ O6 o0 t; Y
finding financing.8 c2 ?5 T( o' T( ?1 J
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
9 w+ d. V, G0 d9 ^# S8 R( twere subsequently repriced and placed. In the fall, there will be more deals.) T! N8 f" i: \; A
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
! {% T% @/ R7 a2 P4 \; xis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were/ Y) P, M: \6 L; m# S5 @
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for/ A8 n' H5 {7 V' K5 W$ f9 G, \
bankruptcy, they already have debt financing in place.* z: F! ^, K* B+ [
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
+ { J, T( u" ~ atoday.
, }9 n8 \3 @+ C) q' z Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
* v/ X! e3 [7 _6 T& qemerging markets have no problem with funding. |
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