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发表于 2011-9-17 13:16
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Current situation
' C6 J) ~; ]1 H) T5 T! d The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long$ @4 ^0 P! |$ F$ k/ B
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
: I7 o2 _' o' ]8 u$ d& T3 O5 timpose liquidation values.% r C( i. K! U$ g( M
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In/ i% e" C s( B f
August, we said a credit shutdown was unlikely – we continue to hold that view.; V) d$ n7 D [& v4 \
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
+ J4 b1 z$ u) k0 ~! Y: s, iscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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6 z! K; d8 j6 S& @: |. dA look at credit markets
9 o/ s/ N3 C( G5 ` Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
7 Q6 n1 h& z N) _7 }September. Non-financial investment grade is the new safe haven.
6 F0 F( E0 N; B" O7 ~9 I0 m High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
7 z6 {4 r3 X. b$ Qthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
6 O9 m, ]# |8 x6 l; ebillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have: _) {' ]% y0 P$ d- U6 I3 n- Z
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade7 H! {) o- `) c) ?/ o
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are# V, z8 w6 s( P( p
positive for the year-do-date, including high yield.
' J1 c2 M& W2 ^$ U% V Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
" H+ [/ {" h" {% nfinding financing.2 M! j: |2 S3 ?: P" p- Q" r
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
6 u' ^8 V5 l9 p% `3 E- d, Pwere subsequently repriced and placed. In the fall, there will be more deals.
5 u! g& S+ c# y& [ Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
: x8 G) C- ~ R) Gis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were1 s% y. c/ y c3 [/ |6 j- H
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
U: n2 x/ { Gbankruptcy, they already have debt financing in place.
! \; ^9 q9 }5 {( [. p G European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain: O' E% b) b- i
today.
4 n: j; E4 [+ i& V* E Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in& n$ Q; {" F! Y7 y5 I
emerging markets have no problem with funding. |
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