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发表于 2011-9-17 13:16
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Current situation* l" ~7 u+ k+ i8 F5 q0 V
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long2 ?- B, s# a" e0 `* ? e7 s3 S
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
3 Q: r) H9 c$ K* M, N! _impose liquidation values.2 o9 }6 R* x" K) f2 m
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In# X1 C8 D* G2 h/ E8 ^) o2 Y2 Z G& ]
August, we said a credit shutdown was unlikely – we continue to hold that view.3 z- e$ L! J" s
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
: _, M7 U e) |* n' {, v- tscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.$ T3 ^" A7 m2 b) y$ F
) L+ b% @9 \- U7 O5 w( c0 nA look at credit markets' [6 z+ b S3 ^- {+ G G6 }0 D
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in& l; X9 g* Z* K* D7 c
September. Non-financial investment grade is the new safe haven.* ], w% [0 P- l
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%5 w& G4 d* r0 A" i
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1. I8 }0 m5 s i. Y- J( i& B+ T
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have M& O! q! F" |
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade' Q. u. C" `7 L
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are6 I" {- {* x; C
positive for the year-do-date, including high yield.4 u4 Q0 Z0 }0 \/ ^. c+ b
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
1 [7 t @; _$ F$ Q8 |3 I! J Gfinding financing.
9 y5 M* ?3 ~0 l2 l6 @ Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
( ?/ |8 H8 p# Y2 B0 Bwere subsequently repriced and placed. In the fall, there will be more deals.- U& x- @2 ]: y' y2 v
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
# \) p" G1 U! U* R! @2 X- d; Zis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were3 u: O1 F( E1 c. [0 K* R) y
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
: q7 A4 `4 Y$ }2 Sbankruptcy, they already have debt financing in place." T- l% C% j4 O7 p* j2 g2 W1 r: `
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain( j( ~/ X' _& a% v* P
today.
: l% @6 e/ i9 x: {9 p1 D6 i Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
! A- B) L7 b# z1 d N; uemerging markets have no problem with funding. |
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