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发表于 2011-9-17 13:16
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Current situation/ s4 S& A% u9 ^6 M
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long7 f0 n v5 j! U) m
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
5 v, d0 [& e# A; Himpose liquidation values.
7 d# k. N) }: k In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
2 }" O7 K" Z& i4 y: OAugust, we said a credit shutdown was unlikely – we continue to hold that view.( S" x* H/ k8 `6 E- \( Y& M8 P
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
: D- N0 ~5 E- R G6 \) p; @; Xscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.) ~0 w0 G# r5 g) T
+ }* H) U3 L) {' \, i! f3 SA look at credit markets
7 W( y" b; ]1 z G$ F6 q: N4 P) W Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in+ ^3 Y7 C4 f6 m) V1 Y
September. Non-financial investment grade is the new safe haven.
' f% j, q/ C! a# M# P High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%$ |) k8 g! T: w
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1! J: f7 g; W7 e. [2 `: H1 ~5 S
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have& P' l/ v t+ Q: @
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
. b6 C r* ?/ U" m; c" rCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are7 n5 l7 c# }+ N8 n& P, v, ^" }) ]8 E7 p
positive for the year-do-date, including high yield.
, R. Z5 Q2 b/ Y- c Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
. A" r: u+ _* B7 }$ a+ nfinding financing., T# k0 }& n* `+ p
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they" m& S4 w6 ?( x. m% s
were subsequently repriced and placed. In the fall, there will be more deals.$ I1 D6 b" D$ G3 L/ d- _; y& E; Z
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
6 ^- I% v$ b( P A- dis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were9 I2 q+ N, a" x& _5 m8 n
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for5 w9 N8 L$ X: G8 }* r1 T2 A
bankruptcy, they already have debt financing in place.
/ m; z% Q) X( W' _' f. F European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain t" s0 C# ^3 o( M' c% u
today./ m9 S: P' d. q6 L
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in. S/ T* A0 e9 G( y
emerging markets have no problem with funding. |
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