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发表于 2011-9-17 13:16
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Current situation }- `0 g& @/ f( R `
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
: J5 V; _) z. W* ]9 A! K' Sas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may7 [% i3 m9 l. @: @" O
impose liquidation values.5 N3 @: X T$ D
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In _( M; Y6 m1 ?) |' h3 p/ d
August, we said a credit shutdown was unlikely – we continue to hold that view.9 E Z: E( y/ {6 ?" I
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
/ _# Q8 N c4 |' r/ m6 o: r8 dscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.0 i; \6 v. c( t. M
) @5 n: Q0 V6 v6 N( J6 _1 Q1 _A look at credit markets
- M) b; {! Q% T5 M$ j Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
5 o3 W1 k: n3 U, Y% ?5 s5 ~September. Non-financial investment grade is the new safe haven.
! ?) n- S4 Q6 O! ] High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
! f2 V/ U @! }2 Pthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
: D$ L3 w* ~" Hbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have1 F0 g* [% n5 _2 F/ r! x+ l# S
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
% `9 e2 K( w; e1 HCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are- t% C" s+ q& ?% P
positive for the year-do-date, including high yield.
9 o U& R3 B6 U8 s& F/ ~% L Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
( @% a" B: @- x Afinding financing.
/ _( v# D! P1 n; g" S6 T; z Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
- x! f+ r0 \5 W3 _4 |1 s0 P) Wwere subsequently repriced and placed. In the fall, there will be more deals.
4 O) M3 z4 L |( J4 y: N* q, I; { Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
/ Q2 y" K/ o8 z; R+ mis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were3 S0 c1 g' I' b% p$ w. g/ O
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for; w) L4 v* S; T/ D6 l5 O
bankruptcy, they already have debt financing in place.( ]( X4 c5 \* ?
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain# j: e; v' R0 u; g, E# F% I7 i
today.
2 \9 {) ]8 Y# ^4 E% z Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in y0 Y$ P- j, R& w% Z
emerging markets have no problem with funding. |
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