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发表于 2011-9-17 13:16
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Current situation
5 X5 L, l7 @3 S The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long# E% c' I! p" u! `3 y" J1 T' N
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may6 n; {5 k, X! j5 T8 y# r% j
impose liquidation values.
: n2 |' y0 d) F6 g' w/ i In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In. W/ u; \* }+ y1 D8 v$ E7 f4 {- u
August, we said a credit shutdown was unlikely – we continue to hold that view.
2 Q3 P& F' i! M* j# ~" g The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension* |1 p6 O/ O, B5 o7 w9 j v9 ^
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets. e! [! p# y. }3 ^6 Y
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
9 _1 p" Z/ J) A! c/ _September. Non-financial investment grade is the new safe haven.
& m+ Z' M5 I; V/ |% P& [0 c, \ High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%3 X+ x% s: Q2 W) g" R6 J
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
2 q! b. O3 q1 d. b. ?3 g6 H% nbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have. s2 r1 H* z/ [' e4 I
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
/ z" S4 h) C$ W( O% l$ b* aCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are- d8 s! J+ K) M+ ?
positive for the year-do-date, including high yield." K7 u; N" s( F
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
$ \# C( e2 ?% i3 \finding financing.
+ ]( B* ^/ C y Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they0 y7 e0 Y% e. n2 L
were subsequently repriced and placed. In the fall, there will be more deals. ]9 X3 m4 v- ^
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
5 o, j! k7 l2 h( g3 {3 N4 ^3 Nis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
9 H) E* X$ X9 w4 N+ p* W' J) Pgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for; j7 _% V- U& ~4 i" v
bankruptcy, they already have debt financing in place.
; l$ B, D( p4 u9 ^" Z" c European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
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 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in' }2 \! w6 \2 @
emerging markets have no problem with funding. |
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