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发表于 2011-9-17 13:16
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Current situation9 t/ U. C: A7 z+ [( X
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
& K7 l x4 A+ e# d; o. `as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
: L# G9 \( ]9 oimpose liquidation values.9 D2 d+ w7 l! e1 a; G
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In9 Z: P3 }$ n! `% ^: C9 E1 w( R3 r
August, we said a credit shutdown was unlikely – we continue to hold that view.
: I( ^1 W9 m: a# D- G- x The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension1 ] t0 p, b5 N+ X h# j6 c
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets k4 e6 E! r) I! `3 q
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in1 Z: z" o: X7 f4 A3 {# v
September. Non-financial investment grade is the new safe haven.
$ l) w( C! z2 Y+ k' k High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
4 O' I0 K+ r* G5 s! C! vthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1' T5 X0 `0 ?9 A3 [
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have( q/ ^- f e- M$ O$ ^/ \, q
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade0 N. I. W2 A3 F2 n3 J. n
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are. F& u- r( ^- w5 M! s5 ~4 ?
positive for the year-do-date, including high yield.
: t' R: C8 G4 I$ S2 T Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
8 q+ n' j8 S6 Vfinding financing.0 g, y$ k* S& g, r$ \, U6 |* o
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
! C6 E2 S: S8 `: R& x- u) Rwere subsequently repriced and placed. In the fall, there will be more deals./ |+ C4 O: O8 I+ Y W
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and; u& N1 O5 l' S. f0 o% j# A; q0 N
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
# C4 v3 F9 e4 H3 ?going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for+ g5 X( {% ]6 W" i& `
bankruptcy, they already have debt financing in place.
' }+ X- D. [2 N6 i9 y# B+ u European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain3 a+ F/ g2 P2 K3 s
today.
) `1 N |5 D; N& @0 ?# Z& L* | Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
6 J* k0 B8 ]: a% U' [$ ?) H x! jemerging markets have no problem with funding. |
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