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发表于 2011-9-17 13:16
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Current situation& h1 x- n/ M v* ~' J* h. S
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long( c ^* F! ~* Z' f0 Y8 U9 s
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may# q+ j5 V9 _. c" ~, |+ _& f& [
impose liquidation values.
* _" t- s% J, A* b* ~9 \1 y) B( P In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In3 L" o" ]2 }0 C' ?, R
August, we said a credit shutdown was unlikely – we continue to hold that view.
- t8 d* b& c" `# H, B5 L- ~! ] The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
! H( ^1 F( S7 N% qscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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9 h& I* ~7 t" w* l& P- s; I8 o5 KA look at credit markets
2 K J- p3 ~3 x7 C2 `: N Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
$ P# z1 B3 d9 n8 M4 v4 V4 tSeptember. Non-financial investment grade is the new safe haven.
2 e7 S0 l# |& p( f8 J High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
! l+ X* I3 [+ v7 D; xthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1' T1 }& P- u' m( `
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have% I: W0 E/ Z2 ]/ U) D1 D* }" M p
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
, f; S9 ^# W5 n. c1 ^4 Y& t9 E: D( ?CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
; z1 s6 l$ S$ d5 C1 a+ ^! ]positive for the year-do-date, including high yield.
4 u) |1 A. K( M# a0 ] Mortgages – There is no funding for new construction, but existing quality properties are having no trouble* Q) Y0 `% E4 U) g
finding financing.
8 c3 O7 w4 C/ w* Z Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they# x8 D5 P# I8 c# c- t3 H
were subsequently repriced and placed. In the fall, there will be more deals.4 h5 S5 P' f3 l& D
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
4 M) U; {* Y! ?! e/ i8 Iis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were( M2 S2 n$ E3 M& p- r
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
: J P9 r5 Y) ~bankruptcy, they already have debt financing in place.
7 J0 ?: P9 @* a6 k& [ European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain; R5 u/ [. r0 }% G" d
today.
! s! z5 h, M7 F( J0 ]4 u5 {) Q# ?: V( y Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
- l; [7 s x+ i7 |* r8 xemerging markets have no problem with funding. |
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