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发表于 2011-9-17 13:16
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Current situation6 g" x" w6 t1 x! W. _" J
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
; O) m* |6 r9 i8 Y' l: Tas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may$ P+ h& J* b C! x# u0 @- C9 c3 N
impose liquidation values.
j* ?/ w7 _7 B }2 `" _' y6 U3 O In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
1 I) b$ B1 D7 [4 V: GAugust, we said a credit shutdown was unlikely – we continue to hold that view.
, H6 K1 [4 W* J The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
% y1 @" V" T4 I) u! L4 Dscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.$ h% m5 E% Q; ^' u3 k) r2 l$ f3 r
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A look at credit markets
' S9 I. o: A1 x" {$ |6 h. H4 i y Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in! x! A3 h z: j2 s1 G3 A! e
September. Non-financial investment grade is the new safe haven.
3 S( l! i7 N0 |0 a) ?2 z' x% |- x High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%+ E/ ?/ \$ k8 T* `# ]" M' V
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
! j! @. P3 x q" @# ^' pbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
; j# V- h4 r1 h8 \! O3 b* U! haccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
( O* \/ B/ Z' p" f$ I5 ICCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
5 T, @+ q) K/ j# T7 Dpositive for the year-do-date, including high yield.
8 J9 A# Y! ]$ S# W3 j. F Mortgages – There is no funding for new construction, but existing quality properties are having no trouble4 o, a3 N+ k) W1 j4 {: e
finding financing.1 b/ G5 U2 }' a) x1 g
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
( U( m* X& }3 e0 P& ~5 ?/ m2 J% vwere subsequently repriced and placed. In the fall, there will be more deals.& ^! Z, F1 W" Z$ o9 P: [6 j' a
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
, z% {* v, K8 G2 A: p+ [ tis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
0 `$ r8 r6 A- P+ xgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
- m& ?- d/ X( b. w Sbankruptcy, they already have debt financing in place." X$ t8 w5 j1 U. u2 b z' x
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
" |3 F: \0 G( A: l& mtoday.
% Z" u Y, }* T Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in& h" D4 \$ T9 ?" T$ G
emerging markets have no problem with funding. |
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