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发表于 2011-9-17 13:16
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Current situation9 Y8 C# U7 m9 v6 r- w7 J$ v8 x
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long$ U3 M3 D3 o1 ~$ r' K' e
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may2 U% K0 X& i! ^( _ q9 O" Q
impose liquidation values.
' Y6 S) X- |; ?6 b/ ^: o In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
" ?. `- }& c- R5 H6 a, s3 R' G j, GAugust, we said a credit shutdown was unlikely – we continue to hold that view.% e$ ~( l2 ]8 z
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
V. \$ l, R/ Y3 Cscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.1 E# L2 r2 P1 X- Q( q
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A look at credit markets
, a4 N6 z! @! G6 b+ F4 O Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in# l. O- Z( M9 n( Q: w+ {
September. Non-financial investment grade is the new safe haven.
7 p$ h" J* w9 d2 n1 b- e High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%( m5 Q7 N/ m; Z
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1% T! P- D/ Z; ]+ `0 ]
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
/ o8 o7 c: z/ g( x/ i: eaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade$ C, B- O! p1 f/ H
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are3 U+ S2 w4 M3 q( \, K5 F8 D
positive for the year-do-date, including high yield.
6 m3 q X! E! P b4 l) P& M { Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
( h, C z9 a& B. Afinding financing.
1 |9 G6 _8 J" I+ Y8 K Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
# C, @! ^: a; C0 _were subsequently repriced and placed. In the fall, there will be more deals.7 S+ }* E, ?& W, z
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and) @3 U: ~/ o5 m: X4 s- ^8 [
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
7 a! V+ B8 j+ X& u% d* c/ ]going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for3 q, N( [+ L# K' v
bankruptcy, they already have debt financing in place.
( g" H: H' N9 K, P3 H+ g European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain3 @. L" N" R, W
today.
8 \% c& z3 v" Y4 u: i- I2 K Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in) V7 C$ k5 ~3 S; p
emerging markets have no problem with funding. |
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