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发表于 2011-9-17 13:16
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Current situation
! L3 r' s# z8 h/ m& V1 u The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long0 y. B2 f( \$ p
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may8 g3 i( U6 i% {- g4 p2 I
impose liquidation values.0 w* q+ e1 W% S( h% u! b8 r
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In: J; Q+ I$ [" _
August, we said a credit shutdown was unlikely – we continue to hold that view.
, a" L$ a; ]" k" | The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension& p: ~" B- e |" u0 u, I) F
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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" o5 I2 d( L/ q. p" q" iA look at credit markets
! }8 x( e" i# o/ Z, z Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in, D- ]1 q2 ?- I. c7 |5 a; i( v& P! c$ L
September. Non-financial investment grade is the new safe haven.6 m. U: U9 | i/ b3 Y, ]
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%8 l/ i o3 h u; i8 ]
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1, V2 Q& ?9 L* h% \4 M q3 a9 ?4 J
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have0 K: P r9 |/ r: h$ A
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
( q, q5 s* T- R. {CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
7 p+ G: r7 `% Z% [positive for the year-do-date, including high yield.% w% d$ P1 ~3 f& A! W3 o. |) g7 Q
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble9 x9 c* g. a7 j; g7 \ z* A4 }
finding financing.
7 g8 }' t3 n# h( J" G, D Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
. e' a T; N6 g% p+ m u+ owere subsequently repriced and placed. In the fall, there will be more deals.
; S. z+ l3 M$ |4 P Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and$ n8 q; b! ~2 I0 F y
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were. c' `- Z* D8 ?2 Y" K$ h; T5 X' r0 O
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for: Z/ V8 g( V" [9 t. Y
bankruptcy, they already have debt financing in place.
5 }3 `. m, D7 r9 J7 C) P9 n European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
7 U( q/ b6 f3 c7 Xtoday." Q9 g3 A0 D) [; h+ A
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
& n/ C6 x, |9 [/ y: Bemerging markets have no problem with funding. |
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