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发表于 2011-9-17 13:16
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Current situation! `) y! A% F( d2 n7 J# }
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
( i+ ]& [0 f( ]& U. Las funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may# s5 d" Z2 }( ^# [
impose liquidation values.
) y4 w. D" s/ g- U. K& m3 u In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In* w, R: a3 B, q3 V& ?( H R
August, we said a credit shutdown was unlikely – we continue to hold that view.
, A' @9 M. O" H9 B The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
! r* J4 `+ A- H' ?& e& F0 Bscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.3 A* j/ e1 \% _' T
# n$ w7 |# A! Z2 m- jA look at credit markets
8 a3 j( }& `) p5 }& v Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
5 Q* D8 F2 b" H: ~# B3 JSeptember. Non-financial investment grade is the new safe haven.
4 r% p1 J3 b/ F( w High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%7 o m3 @& h$ O& p& c. |9 z
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $15 Z- C& K9 l; c' e
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
( ^/ w5 r! L5 l% Z" vaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade, n. x' d6 V4 v7 ?1 Z% _, x7 ?
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
3 x$ P. e l9 J6 mpositive for the year-do-date, including high yield.0 P l7 k6 ?7 C/ t0 ?
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble5 n/ m* ?( ?/ d* \, H
finding financing.4 Q; }4 x2 f* _* ]; p: s
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they( m& R& k' Y* E2 u6 f
were subsequently repriced and placed. In the fall, there will be more deals.1 P' P1 H8 @& a8 I
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and7 U+ v; q+ L; K7 A; A/ Q
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were2 K% f' N# M9 s
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
8 ?" r% |' i1 c* J3 wbankruptcy, they already have debt financing in place.
5 w' h" P4 L, t5 n# q' J European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain& A9 v8 u! ?* s' s: d. b, g
today.0 N. V0 E& `4 b" \4 r# Q
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in7 f& A( O$ @* _; P1 n) M, t
emerging markets have no problem with funding. |
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