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发表于 2011-9-17 13:16
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Current situation5 o- P; R V* z; y' t" K4 ]! ~4 Y
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long" ~- {2 x7 ]' O r l# Q
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may' v- p5 A' ^4 ^
impose liquidation values.
: G' B: g' j3 `/ S2 `- v4 ?" v3 b: Q6 O In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
/ m, Y% |. w; h/ a3 j$ o( ?August, we said a credit shutdown was unlikely – we continue to hold that view./ ^1 X' d' u0 X( [
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
|6 I8 k: ` h6 Oscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.6 c* x* z- K7 A& r! b
, X$ j8 B; B' o' n# |# nA look at credit markets# s% N5 ^( C @1 {; N
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in' M% t) ^6 u( W" o n1 Y
September. Non-financial investment grade is the new safe haven.3 s" o5 _& [" h5 u# r L& ~4 f
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%: F' N' ^% }& V# f# j8 L
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $13 n8 g; x$ r. c4 ^4 w, K9 r
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
- u! n+ m4 o# l; h% kaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade/ M; `9 M" X! ^8 N, [
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
% E- S1 }2 I; q3 [positive for the year-do-date, including high yield.
$ R8 d7 d% f& @ p& Z( F Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
( U6 E' a( y3 ffinding financing.
$ l$ R c* {0 l. i4 N+ P Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they* D, [; a' i# ^+ a l
were subsequently repriced and placed. In the fall, there will be more deals.
; F1 G4 z0 q$ x% D3 @* f Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and* a) M! X1 c% K! _8 ^
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
" h. Z+ p/ Z3 s' b: @. _' `% Ogoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for* E, b' ] j+ u6 b9 J
bankruptcy, they already have debt financing in place.5 p, z. {* u: t- u W1 k% g+ B
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain, l: c. R+ B8 A& o
today.' A8 k- z( I# }: ?8 {+ ~* [
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
: r/ m+ p6 q! n1 C% wemerging markets have no problem with funding. |
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