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发表于 2011-9-17 13:16
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Current situation
$ c; @' U$ U0 C* D% j" _7 j1 \ The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
) q1 p" v* M. a2 ~6 X ]as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
- j, {+ q" C6 E* y D N1 simpose liquidation values.
5 F( D. g4 e: K5 {3 q8 {8 q* q# W In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
5 f _$ y. n" i$ n7 o1 ?+ nAugust, we said a credit shutdown was unlikely – we continue to hold that view.
' m. F4 A1 @, e' z1 B% I The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
+ M" i& o# [6 e. Y% v$ ?$ K) tscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.3 Q+ _" F0 h" X* i7 O$ n8 N- ~' G
9 q, r3 ~5 ]: g7 A0 G K
A look at credit markets* z5 W7 t2 e6 u6 E
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in1 a/ p Y# P; r% J! ^
September. Non-financial investment grade is the new safe haven.
+ W8 j% y1 `+ Y6 a. |5 S High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%+ c6 S! J! |! p/ r- m6 f
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1! @. K3 T: A( @+ K9 U( b5 b$ ]
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have5 |3 C5 O l# j
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
( ~% h7 M. P$ p$ Z3 F0 z: NCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
( J% y7 s8 N; A8 _3 lpositive for the year-do-date, including high yield.
9 Q4 J0 W/ V/ p Mortgages – There is no funding for new construction, but existing quality properties are having no trouble H* I R; {; g1 x6 `
finding financing.
% |$ ?- L/ z8 A; ?6 C1 | Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
" ?% \. l- j. O' T; v6 W0 nwere subsequently repriced and placed. In the fall, there will be more deals.$ S% S } X% W
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
3 H) D: v: }" ~! Y1 p1 X! r8 r$ Q# uis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were* ^* U* b( \- N0 Z1 ]- ^
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for6 _- s) Y* }6 l( _2 @) W+ w
bankruptcy, they already have debt financing in place.) e1 M( ^! z- X4 w
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
# I& I2 D- {4 T: p) V/ R" |9 itoday.9 I9 D4 H1 e: E* y# z; Q
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
5 y2 v: U, q9 g0 m9 ?emerging markets have no problem with funding. |
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