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发表于 2011-9-17 13:16
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Current situation# _3 ]* W7 J# }7 a
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
8 r3 h9 U+ ?, {3 l4 y8 U, W! cas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
! W4 y. G I9 t6 C' Q: W% m) Yimpose liquidation values.
8 z: J6 C( [ n6 E Z, f In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In/ ]- H5 S& n: \) W: o
August, we said a credit shutdown was unlikely – we continue to hold that view.
! o% ]8 E: r; a* Q" A) s The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
% e6 C, u; c' ^. E. Hscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets
0 ~) U$ z1 j3 `/ ^ Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
7 j) G& @% v3 S# C8 `. \* RSeptember. Non-financial investment grade is the new safe haven.
7 G2 O9 L- z3 [5 O High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%" K. y9 J1 {1 B3 l0 I! q- H
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
6 a7 U: T) c: `4 @9 Gbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have4 P/ }6 T6 s6 v$ U
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade5 R5 Q/ j' B- `- \- }
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
, x+ T) Q9 x* b$ S2 F! p7 Ppositive for the year-do-date, including high yield.
0 c" {; X1 O) K Mortgages – There is no funding for new construction, but existing quality properties are having no trouble1 g. F( C [ d+ J9 K
finding financing.
7 q( ^9 L# E4 @8 w2 h* _& r6 d9 w6 r" I Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
4 R( p, z& c( t' L7 H! p* a5 Swere subsequently repriced and placed. In the fall, there will be more deals.
9 H' Y H* l' x1 ^; D+ o/ ] Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and3 Q* Q* m0 L5 h7 P# f$ c
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were8 M/ k5 o. d- i; [" Q
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
, X7 X8 r$ I S' E# p! d4 Qbankruptcy, they already have debt financing in place.- H7 l6 F9 m4 t) x3 Q8 o( {
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
7 ^) j7 Z3 F# Q/ O7 atoday.0 d1 `" l' e; {0 D+ E+ `
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in7 t0 ]+ b7 J) ?: A1 X. M; j
emerging markets have no problem with funding. |
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