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发表于 2011-9-17 13:16
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Current situation5 k# x0 g5 ~! ~& }9 X$ ?' n
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
( k5 _$ @5 i( |as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may) g/ T: a+ ~; R- k9 x; X, X/ k1 p
impose liquidation values.
+ e8 i& n$ |; _ In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
& ~5 J- b4 p& H5 K1 X9 lAugust, we said a credit shutdown was unlikely – we continue to hold that view.
; g% `) b4 c; P* ^& e6 t The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension# B5 g" c# X* n* y3 o" k9 j
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.0 p) _% T; N1 a9 k7 f
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A look at credit markets
0 g* L6 t# [$ w9 @; _# U D Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
. {9 k8 A j* ]September. Non-financial investment grade is the new safe haven.& D, E- j1 p1 M) B# A1 e
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
, g1 F* @. K% {0 j" V: P& b7 Q6 ^then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
$ V$ O# J* Z' N; s5 M9 hbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have: Q" [: H$ t8 r$ E0 A
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade0 {6 r+ V6 Q% V9 F* |7 j; H/ r0 H% e
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
/ S2 |4 |7 V6 M: npositive for the year-do-date, including high yield.
2 ?# E) W- u2 m" ^ Mortgages – There is no funding for new construction, but existing quality properties are having no trouble( {/ X: t% M% q& C. x4 j
finding financing.0 q# y. s" ~- a. e
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
! Z% f# e# Z6 B4 V5 k5 Wwere subsequently repriced and placed. In the fall, there will be more deals.
6 t; J4 h8 Q1 b0 p# s* L1 q Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
5 Q, K7 b9 d' n: Q3 f/ xis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were7 e1 I a! C& Z! D1 g/ k5 |
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
2 Y8 g. M5 V" p( H' I' b9 m, Tbankruptcy, they already have debt financing in place.
2 }3 X' m3 D; o1 `* { European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain/ f- K+ |5 h. o" |0 O0 B
today.( P$ D- c5 L8 O2 h0 K
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
* L) e+ C. m7 I: j: @0 Femerging markets have no problem with funding. |
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