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发表于 2011-9-17 13:16
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Current situation5 u( X3 h: s% ?; ^) @/ c; c) M
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
0 [) Q7 W2 L+ ]( U' aas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may+ n6 J! ~. w3 m2 R
impose liquidation values.( k+ E' i b! o- J& H
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
9 {# E2 p' t7 {$ UAugust, we said a credit shutdown was unlikely – we continue to hold that view.
5 f- j# p" l: {% c2 Z" R8 m The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension9 R) g/ M7 Y. S! F8 Q, O
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets
; S8 @, |% c7 c8 h& I) g8 Z2 s3 A Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in" u+ Q% \- X" e) K+ q
September. Non-financial investment grade is the new safe haven.
( i8 z# z. O: O/ b, D High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
% p# B$ T4 K, E0 M. A) _then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
* I7 x, `2 B& Z/ G6 Zbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
9 \& v6 O# V5 p: r0 @access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade3 Y% i6 N( N/ \7 N0 [! q
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
9 F6 y! J/ k- }9 \8 i4 Tpositive for the year-do-date, including high yield.
/ f: u# I. Z c9 V Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
, w& g6 E% B3 Z- d0 g* ofinding financing.: x# b; ^: Z1 V: a p
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they, g% _8 d9 r) T' p% k0 d' ?* a
were subsequently repriced and placed. In the fall, there will be more deals.0 U& c! k) @0 ?5 S4 j5 [
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
8 e2 E2 o1 ]& v2 V: W& E# ~is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were7 _7 y( B) ]5 i: g! W
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for) f! Q5 j, Y& P4 V6 u
bankruptcy, they already have debt financing in place.0 t( U9 X; y3 g: 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
) R/ J+ t3 [( demerging markets have no problem with funding. |
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