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发表于 2011-9-17 13:16
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Current situation- [7 R8 U: s( e; M3 g' H
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long9 f/ P8 p0 C6 r r1 ?: c+ A3 i
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may* G Q- T0 k3 f5 {; p
impose liquidation values." ?$ ^: p" P- Y* G/ [4 a; @( S
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
: R4 R6 m, w$ g$ q8 lAugust, we said a credit shutdown was unlikely – we continue to hold that view., f! ]# ^ s I# Z# O. T# T2 F
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
; Q% S0 E, @0 T; U, {1 oscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets. @7 I: `/ n: Z8 Z9 I/ Z
o% _+ _: ~ H
A look at credit markets
: ]6 c8 M" d5 a, Y$ s# P% y) `3 l3 d+ R Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in4 F' T) {; W% N! `
September. Non-financial investment grade is the new safe haven.
# G+ Y& W& a5 o% M4 E3 y2 ~ High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
& t% `. n6 [3 s0 d, m+ q# c7 Sthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1; A+ a4 j4 u+ L( N& U5 X
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
: R$ f& K3 k" z p0 W/ W Aaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade; T# r" V- H6 o* A# B
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
! W9 G3 ~4 V1 `+ Q; n4 x- g, L9 n1 zpositive for the year-do-date, including high yield.
8 g* p0 l4 m( {4 g& r Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
/ q6 }- \1 x' G' w" V9 D. a' A. \) jfinding financing.
8 C$ y3 y0 ]- g7 i8 z Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they/ V( P/ E% i- Y
were subsequently repriced and placed. In the fall, there will be more deals.3 d! C$ F$ S' p( Z6 c
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and& F+ O( O+ ^* c( @* \7 C' a
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were7 r8 s9 ^ k) N
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for2 F$ j# v1 [* _
bankruptcy, they already have debt financing in place.( R% P: @2 C# ~5 H$ S! i9 q: {( C1 Z
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
! ?# N4 I$ @. Rtoday.
2 a7 z# ^2 K; a. s6 j Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in; |* Y7 N% ~2 T1 K( c: [# l
emerging markets have no problem with funding. |
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