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发表于 2011-9-17 13:16
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Current situation
. N: `9 I5 M& R7 C& `" b# j The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
8 D, Q7 g4 A, \as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may: q' K* I! k/ e% N U$ N \% }2 s% t
impose liquidation values.
, @! ]9 ~9 }! i$ p. t4 u, A In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
( C$ P) @1 H# F YAugust, we said a credit shutdown was unlikely – we continue to hold that view.
$ T- V' B" O; `: k+ r7 j The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
. T/ k/ y( @" E/ l! X; Nscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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2 [( I# ?& g& K0 c, L$ O/ yA look at credit markets
9 g( I! W j7 K8 w$ Q+ l; M Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in2 A- U- w! _3 c( j' f0 a$ o6 s
September. Non-financial investment grade is the new safe haven.
7 X1 O8 f+ {# G High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
6 d" e# r. |5 W- g" |) B1 q1 X& Xthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1& T2 O2 x' g3 p @& n
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have5 s/ t: P& Z/ l
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
7 ?: T1 K3 t3 S! R5 XCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are7 z8 b. e9 A0 F. }
positive for the year-do-date, including high yield.
, _/ _: A) Z+ }: [0 M Mortgages – There is no funding for new construction, but existing quality properties are having no trouble& K, l1 m: N2 N+ n% h
finding financing.
$ W% F3 ]" e! X G6 F' b Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they* G+ J* D( O" C' t, x
were subsequently repriced and placed. In the fall, there will be more deals.7 Z& I1 E y* k8 D0 V
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
9 x+ N; o$ C, c% }) }is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
: U* c$ ]6 M/ ]" B# |- B1 O2 F) [! agoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for, C/ l) r- [+ Y* E" {1 c, O/ m; k! Q
bankruptcy, they already have debt financing in place." a0 r( I; K h
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain) |" n& A6 l' M4 u, c, P: p3 A
today.
1 Q$ j7 e8 b \. u( i3 r Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in' A* E* ~1 S0 D5 o/ c
emerging markets have no problem with funding. |
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