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发表于 2011-9-17 13:16
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Current situation7 v, g% b; T( e! T+ Q+ G: c
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long4 i: J# I" O% }4 }; S! @
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
7 V; o# y o3 T- Himpose liquidation values.. C( d6 o6 D6 e& o8 T
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
$ P+ h* l! s, r6 A9 L3 b1 zAugust, we said a credit shutdown was unlikely – we continue to hold that view.
7 e' _4 f& |; Y+ K The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension7 K7 p B% Z* P M9 j
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets." @3 v, w( Z( J, Q. R
$ U1 W3 n; z4 [! \* e0 c! D7 Z8 ^# t" uA look at credit markets6 v* e0 z9 @. l7 h3 y
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in" b6 i; K: I+ L8 q% z2 I/ T( w
September. Non-financial investment grade is the new safe haven.8 U6 I6 V7 B/ q1 g
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
7 v& {4 t/ ^ W( Rthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
: t1 g/ _# u W( j* z1 ~; Gbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have3 B3 |& A9 `+ z- i2 d' [% |
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade* {3 Q7 c3 Z5 v) l
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are' v: L- a2 f0 O$ ^: B! p/ @2 k
positive for the year-do-date, including high yield./ j, P0 d0 v, q7 _
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble3 @) t* N. F4 `8 r+ G4 q' H
finding financing.0 @8 I: W( m/ b" P# a
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
& n& K4 ]' Z$ ?9 A) f* twere subsequently repriced and placed. In the fall, there will be more deals.
8 ~2 j. n& U8 D$ L$ s0 r& k# } Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and6 S5 N2 r) P- f) e3 M/ ]" M2 G
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
. K- N# q! O9 h2 F) `/ Tgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for) V, \+ d- S# j- ?
bankruptcy, they already have debt financing in place.
( n% ?* ]7 h* |: K9 i0 ]+ g# {! O | European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
7 A6 e/ Y+ H9 \) v% Jtoday./ i9 U' @+ w5 S3 {5 ~/ Y; p
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
n+ e/ A" A/ zemerging markets have no problem with funding. |
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