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发表于 2011-9-17 13:16
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Current situation
- {, U: g' G+ C( ^ The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
; d$ \4 ]/ _8 s# y' ~! kas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may* _+ \$ p1 {7 i) G8 ~. h
impose liquidation values.' h8 X/ G0 X _2 G Q
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
4 `# q' z: y# I4 y Y6 {% m( `August, we said a credit shutdown was unlikely – we continue to hold that view.% t% D' j( Z% B$ c
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
6 K- B& w0 z0 n8 G+ ^6 A7 @scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.) R& F N, G% ^1 W- @
. u, @% s% I. K+ B! w9 T
A look at credit markets
+ j3 M% [) p) x Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
% @/ {3 k' u+ Z: |8 WSeptember. Non-financial investment grade is the new safe haven.
3 f! e: u- X0 \* V& c High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
5 e$ S8 V- f" P3 J* f, I1 Qthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
% c( l* {& _3 K9 p& gbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have9 @; t8 ^% k0 n8 p' S" j8 S* ~
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
4 @8 {! v( J! ~2 QCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
$ ^5 }) J6 I' ]9 ~. Ipositive for the year-do-date, including high yield.$ u! R6 s% X% {; b
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble i( k; i9 o$ v
finding financing.
* f, D" _! V7 J3 \+ m Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they9 e, ]* ~( n5 i) i+ q4 g0 b
were subsequently repriced and placed. In the fall, there will be more deals.
$ N; w- K& c; ^0 }' S Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and; j8 X% Q M. Y9 F, Z
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
+ X+ p' L- t+ Y2 Agoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
! z) s# M& T$ o4 lbankruptcy, they already have debt financing in place.
}7 f7 L1 q: a0 M3 u1 j4 }) ?' ~ O European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain) q) b( S/ x5 U% f& L/ V* w- q
today.( y# D& b: K0 F7 O% H" g
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
1 ]& c) d7 y eemerging markets have no problem with funding. |
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