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发表于 2011-9-17 13:16
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Current situation
( F3 q: G( V. h( A- A; r, b The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
. z1 {% x5 A: X4 V" d3 Xas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
$ ~" R0 x, h" M1 f: jimpose liquidation values.) P9 w9 q" z2 q# J7 {0 F
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
3 ]2 O# i! ], o. R$ rAugust, we said a credit shutdown was unlikely – we continue to hold that view.
5 r9 q5 p7 ]3 b. w6 H/ ~. ^ The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension: p7 }" t/ [. f9 y
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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3 g) {: j2 B |! W) L7 ~A look at credit markets+ E6 b U/ l, v# f# c8 z
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
y4 E) ]7 H4 c2 S& kSeptember. Non-financial investment grade is the new safe haven.7 W/ \( L8 {* ~5 A) c& Y
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
. c0 A$ D7 i% @6 D7 s) j8 o4 zthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1" Q3 T4 o8 z1 y( z" {8 y2 _; s
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
7 R- \; y/ w) Q0 k1 `0 O7 _5 i# m( ?access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
7 K, R" ~9 o" CCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
/ E# f% m8 K: u* [# N9 p1 `, Zpositive for the year-do-date, including high yield.; I3 T# a+ Y) M+ M8 }
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
4 ~6 F' s$ [) c: l. D" |9 R* Sfinding financing.( A* P0 Z. p. K3 B/ g+ U# N
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
) ~2 Z0 \ r2 q0 t- Jwere subsequently repriced and placed. In the fall, there will be more deals.
8 C) R s" w0 s- h: t. F2 {1 m- K Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
# K3 `0 Y1 C' n' ]. Yis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were; _+ w$ j0 u( A
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
# {: }! J; i7 Y) y/ wbankruptcy, they already have debt financing in place.! Q! [( E P9 j% b( m7 z' ^% e
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain3 J! _5 m: t, n$ S7 z
today.
9 T/ R: h& ]# A' e' o Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in2 x- ]) ~8 L# ~: T2 m, I* ^( |; y
emerging markets have no problem with funding. |
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