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发表于 2011-9-17 13:16
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Current situation* O' [: F. ^) ^4 T
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
2 L7 m2 v) y" B$ cas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may7 L! v" K, o6 y @1 S4 v( E
impose liquidation values./ }1 n: M/ Z: w4 C. R3 C
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
4 W2 w4 A( P% S1 K4 k+ qAugust, we said a credit shutdown was unlikely – we continue to hold that view.2 H5 c1 d' D/ G6 G" `+ I
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension, g" ~3 O( S% B4 q, w
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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& P$ q. K% U7 A# R* }3 d0 lA look at credit markets
/ V* W/ B9 I) [0 [ Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in, h N" L& g ]0 j- H
September. Non-financial investment grade is the new safe haven.
* o! y$ ^, y% K8 P( K. w- G High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%- q- o+ T0 P; s6 |7 [4 h( Z4 R
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
& ?+ [4 K# T6 f3 b4 p4 w+ O$ p% v* L1 F6 ?billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
& j/ t/ u- C" R% ]access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
5 M5 D& r# e5 z1 u0 u' d! ECCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
# i+ V& F- O: g j# a# c: ^' Ipositive for the year-do-date, including high yield.
- e9 @* s0 c! d# T3 W Mortgages – There is no funding for new construction, but existing quality properties are having no trouble o4 t; h F/ B6 h" Q
finding financing.
+ p; i6 ^: m% h( \3 ~ Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
$ ]8 ~8 [9 r$ w' I5 Fwere subsequently repriced and placed. In the fall, there will be more deals.
" ~/ I$ h0 G& {' R4 Q Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and, Z! D$ O3 O V0 [3 [
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were) I! L" M$ s& ?6 a2 l
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for8 `3 E$ c, c6 C% E( s9 N
bankruptcy, they already have debt financing in place.
# F f; ~% b0 s) s6 d. L1 S European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
+ ^9 {: r3 t( k+ Ptoday.& [8 W# E# \* E5 }5 n
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
! I6 c9 d* P2 A8 {; R+ j9 q+ Pemerging markets have no problem with funding. |
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