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发表于 2011-9-17 13:16
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Current situation
: P1 {2 F2 K' O$ Y9 p- b The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long* `( f* ~+ P9 c1 J+ j! ~7 Z
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
$ s- Y% n2 u/ d' k7 R. `impose liquidation values.
/ p8 L( N4 s7 F$ j0 X5 H In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
+ ~; g0 C8 J, T h. CAugust, we said a credit shutdown was unlikely – we continue to hold that view.
$ o& s) z- {0 s. Z9 A& t% T The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension5 B3 U- ~8 @. c
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
: W6 `- z* C/ W* S! B% ?4 ]9 G3 B
0 w* Q' K0 j0 B8 m" a, E! CA look at credit markets. V* o' T% r O# L i' U2 y1 g& R: q
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
) h! ?* k& }5 r- Y* Q2 zSeptember. Non-financial investment grade is the new safe haven.
! ?$ G8 i5 m/ x& u High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%3 M i* h7 V( \6 j2 E4 Y' e
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
1 `: d2 Z5 `6 n! F$ e8 W/ A6 Abillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
+ Y) l9 z. t9 V ?& R% saccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
0 }, `# \5 E; u* QCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are% z, d3 p; M$ S! S: T: ?; T/ T, z
positive for the year-do-date, including high yield., v u; l j5 v {3 X4 h' Y
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
5 l8 x- N" O8 G/ \/ {: k( dfinding financing.: S# a' g. b8 n6 j+ D
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
7 \, U) B, V6 S: Z1 Q' cwere subsequently repriced and placed. In the fall, there will be more deals.- b4 p6 v7 g# Z3 Z% Y/ m! b
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and$ ~$ D9 ^" N) R* L
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were- e; p5 v! ~' l* E
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for2 \$ k$ ]' g$ @! |, d& y- V: r
bankruptcy, they already have debt financing in place.
3 X, r, `6 T8 \* l% ~# w a/ M European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
# B; T$ U* |5 U4 g# V6 Q: P8 O# ptoday.- E2 R( t, z' O9 ^8 V1 L/ K9 e; ` T
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
' e9 L! @) P1 ~# \- b, `emerging markets have no problem with funding. |
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