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发表于 2011-9-17 13:16
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Current situation5 C5 [8 b0 \% \6 H) I
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long0 w- K, @! A3 \' }! s. ?. E
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may2 Q2 @: {1 w, Q# W3 f
impose liquidation values.
7 H0 _% W7 F5 X! q! i! s7 x6 J2 Z In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
; V3 f' K" V( S' o# Y) sAugust, we said a credit shutdown was unlikely – we continue to hold that view.
4 R$ @9 V q: p" G: d The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
/ k3 r5 l% i7 l5 v- ~' Jscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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9 l# e8 N* ~& O7 sA look at credit markets
, k# k4 {9 C; Y5 d5 ?! Q/ \. a Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in4 T. j G+ A9 `" c1 G
September. Non-financial investment grade is the new safe haven.
2 {# C% z4 T$ j* g2 ] High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
. P7 r5 _; G+ lthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
8 k" O4 @ c- L. P! M4 kbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have/ g6 U$ \' k, C6 _
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
# p. S0 Z. K! KCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are2 t1 q$ U) w5 v
positive for the year-do-date, including high yield.
. K$ k3 M0 U6 i* R6 Q Mortgages – There is no funding for new construction, but existing quality properties are having no trouble# c6 w! H: C0 T
finding financing., X, i3 }7 L) [& ~; D7 k
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they6 w! i c D. `0 ^! S
were subsequently repriced and placed. In the fall, there will be more deals.
8 t' W" M: k W& |, `3 @ T Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and" ?. R- B" e+ P
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
- d, Z9 U- g' f ^( O( B/ ygoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for7 p/ K6 @2 U& z1 z9 S% v8 F
bankruptcy, they already have debt financing in place.
+ r4 Y8 ]( o5 m' k9 x% S- j7 r European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
p7 M# [1 k2 j- I# b; [3 D* {" rtoday.4 e% `$ V& @7 Z8 k& b
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in, K5 y6 y% e& V4 L( [# B) @% I$ T! u
emerging markets have no problem with funding. |
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