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发表于 2011-9-17 13:16
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Current situation9 R1 ~1 z0 {/ B+ q+ Z) P
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
( C7 L0 O+ U! oas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
* F& O' Z' k: simpose liquidation values.
8 A1 X1 c! I. e3 p2 A" G8 O+ n# M% m In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
% B3 L5 n2 V k& r* l9 v$ W0 S9 cAugust, we said a credit shutdown was unlikely – we continue to hold that view.
* @6 x5 h* W5 s! t' W8 S The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension& X6 \/ p/ A, k% K0 x
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
/ s- u8 U+ O2 L$ ~
. S7 _, \. ~3 \, e+ SA look at credit markets
% J6 _7 d% G e' _ Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in0 f E# q1 d4 F, ]% P+ V
September. Non-financial investment grade is the new safe haven.6 m- Y$ k* t. X+ y/ ~2 X% A; d7 y
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
. h _3 p+ `& c' V1 k2 { B/ zthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $14 @2 s; q5 o/ F" J
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
4 g7 f- i$ U* ~% m9 T# vaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade+ W+ N& i! \' v* R! ?" H
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are% ~- b* c7 h7 M z% f
positive for the year-do-date, including high yield.
6 g6 f& f7 \8 F* q Mortgages – There is no funding for new construction, but existing quality properties are having no trouble" M/ c& r% q4 b0 \) K* d0 ]4 I2 `
finding financing.' \. ], L+ ?( v& R5 w2 _7 |% N
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they$ w$ a0 J1 @) Z; ^
were subsequently repriced and placed. In the fall, there will be more deals.
9 e6 C9 H# W8 K Y Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
' v; p" B! \( a0 i. b+ Z9 C7 Pis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were+ A0 u5 b" H0 |2 K0 i& a9 a
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for b+ ^% i, D9 x% {0 x
bankruptcy, they already have debt financing in place.
3 l+ R S- Y- u( b European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
3 J0 c+ [# v, t' `! \, Mtoday.' ~- }0 E& u: i- y2 b$ y
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
/ {3 B; Z, O7 ?; _/ uemerging markets have no problem with funding. |
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