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发表于 2011-9-17 13:16
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Current situation/ G$ X/ G( r' O, I! ?7 @5 C- ]0 T
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
! I* s2 x4 ~2 y5 J+ [7 eas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
9 q' V1 K6 |; v$ p9 |+ ]impose liquidation values.
0 W4 |. U( f2 e: H; v, I In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
& Y/ |+ s/ D2 f9 vAugust, we said a credit shutdown was unlikely – we continue to hold that view.
6 t6 Y4 s4 S) U The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension P; _7 s/ L, \$ T% e6 F5 q
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
8 j. M, i0 e9 O0 Z* L$ t2 R$ ~+ k7 X6 v
A look at credit markets
- U' A9 x9 O- E4 K9 e Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
; ]1 [8 k( I6 f4 ^. f; o* ?September. Non-financial investment grade is the new safe haven.. f3 t3 h( T$ O4 l6 E
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%! j+ O ?7 f& u" `! x
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
$ u4 n$ p" w' k8 Rbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
6 y' |8 {8 \- @! _& {) oaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
4 C3 u9 S2 B9 D$ W6 T( `, nCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are/ s6 o4 F0 h( J3 {
positive for the year-do-date, including high yield.) O1 H! p! z# d' P" u5 A6 O
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble& m- l$ v4 O' j6 r5 @7 C+ S
finding financing.+ A; j. Q" c4 {6 `
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
' C# _* [$ o8 H+ w l! Owere subsequently repriced and placed. In the fall, there will be more deals.
+ u ~. ?& h1 i9 _+ \ Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
) K5 O' P* M+ O2 fis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were# ]9 a$ P* Q' h$ Z; B5 o$ \" F
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
) r0 k7 a V+ K! rbankruptcy, they already have debt financing in place.
6 A( [/ O5 i2 d5 B6 A$ N European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
, Y) i) K& k8 u, ?/ a9 ^) E. x: l0 W* Vtoday.
! E9 v" U3 |: k7 {. G" { Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in+ a7 S6 l$ [* b+ Y: V2 p% D
emerging markets have no problem with funding. |
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