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发表于 2011-9-17 13:16
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Current situation8 B! P: P% I% i. j+ f& y
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
/ }. f) ^8 I/ x& q6 x- X/ T7 uas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
7 P9 G/ f8 }, [impose liquidation values.
- w0 n* B) n V5 M5 f8 y! ~% t In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In, |/ w. ~" d- @1 _
August, we said a credit shutdown was unlikely – we continue to hold that view.
# E, }! m9 {/ u- F The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
# y+ w: ?- a! J* fscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets./ O' d/ c, Q2 m8 r& J5 N
# a1 [' E* R: R( G6 o4 |; C
A look at credit markets5 v8 r# x! ]. c3 E+ {9 e' U
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in$ |7 Z: f) Q7 M: F& j. [. n
September. Non-financial investment grade is the new safe haven. `0 r3 N1 c, I
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
% w0 o8 v# j3 `$ M' A* Hthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $15 n9 w) H3 b1 c" B6 P/ v
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
4 I; b, K% I% `* S5 Faccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade, V9 `/ x6 \% o$ Q& \5 |% |6 V
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
8 Y7 F8 e0 F: V8 w4 j" p' N& spositive for the year-do-date, including high yield.
" ]1 F# e& k( x; b- ]) [ Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
" u' t% t! |0 P" A4 c5 e5 c, \finding financing.
% P6 ?% D0 s8 b! y/ y Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they, ^, x, l# Y4 Q9 h3 ?
were subsequently repriced and placed. In the fall, there will be more deals.
4 G+ t. P) V. T' t7 a Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and8 ]1 _' h) Y5 T1 S3 S. x1 }
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were X( \5 b' f6 w& y
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
2 O l5 ]8 `! |bankruptcy, they already have debt financing in place.
, i# ~1 n) H% [0 s+ k- q! W European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain/ x2 u* E& v$ q( z7 I- A* Z; V
today.
% G4 j+ o) X: P" ]3 J1 B( P; I- z Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
3 R0 Y( t0 T+ }8 x! x- r- i& d, Nemerging markets have no problem with funding. |
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