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发表于 2011-9-17 13:16
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Current situation6 U" @% w2 z8 ^! y5 T. n
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long( ]+ s. j6 P- }$ I: y
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may/ G! m$ a/ V3 L) f' B3 E
impose liquidation values." L' s# k- Z3 j# k$ _/ J+ M
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
k2 P5 S7 A6 y- \: x$ wAugust, we said a credit shutdown was unlikely – we continue to hold that view.4 ^( V0 L* t3 \) t
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension6 ?7 {/ j2 Z: e! H
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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( a8 E* b+ O0 C* m# n: Q) a4 WA look at credit markets+ t- e7 l( N' |
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in& q7 Q- r6 K& m9 a7 p$ m6 m8 u9 E
September. Non-financial investment grade is the new safe haven.
+ M! Z/ q. \& U$ C! A* O; x: _ h" j' U High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%' y9 p/ `+ _' Q
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $13 i4 u$ L9 I* j @! b
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have2 }3 _( q" Y' S2 @7 `: ]
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade" Z' E- W& V$ ` T# {6 r8 _
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are U5 L# n: T7 F
positive for the year-do-date, including high yield. c) x& j1 q1 E7 g: G; t
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
# v6 z' }; L* G7 c; m a+ ?+ N3 y( lfinding financing.
) V% r; V! T% H6 f8 I D Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
9 F- N' h3 e& F" t: `' u) A3 @were subsequently repriced and placed. In the fall, there will be more deals.
# u9 K/ G# H D: F, O! b/ | Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
% B# m( I4 X! Y- z0 X3 ?. a. a0 }is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
9 @1 y9 c6 i. H4 L8 y! E! Igoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for" O/ l# J# C! L
bankruptcy, they already have debt financing in place.: P2 |: T1 z& i& N. s
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
y3 p8 N8 \. w) p# Otoday.
5 q+ H' M* o" |+ s8 X# h: S2 S9 ~9 }# g Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
. v" B$ ^" y# Semerging markets have no problem with funding. |
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