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发表于 2011-9-17 13:16
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Current situation2 i; A- W; b& ^9 {; Q- p' T
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
1 J9 s' C' o2 D) D% `. W% v Jas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
( |# O3 |# `6 G8 {) S wimpose liquidation values.
$ e: E F! h: l/ P5 c6 \ In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
% r5 p+ C3 N* ^7 b# I+ c* B6 xAugust, we said a credit shutdown was unlikely – we continue to hold that view.
# x; M& i# J" j' S8 Q3 Q+ H* N The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
/ Z7 a! Q3 e& J. Q# Q) [ ]scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets. X, n" n7 F' S7 S7 |2 C, z2 }
1 o5 F( w z3 }( s9 }2 _; t" fA look at credit markets
# r# b9 g m \6 _( @. C' e4 Z% Q5 h Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in+ _. H5 \, b5 A& o2 P
September. Non-financial investment grade is the new safe haven.4 D* G3 ]# o, J) ^; L
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%2 C5 A' ]9 N Y: S9 M
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
+ V$ \- w7 s& X [5 f% Kbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
+ t- s8 E1 B l B( e2 K0 z4 \access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade- R/ g. ?/ x% Y8 D
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are3 H* I& s5 @% X% r2 o
positive for the year-do-date, including high yield.
& _; B8 l: z( f V6 Z6 l- I Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
. }6 T9 N# ^; i+ Jfinding financing.
8 R) a/ l; [, H* j, E$ x Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
4 V1 u# _8 j& O6 U `were subsequently repriced and placed. In the fall, there will be more deals.
2 ?0 q4 s# [' p! i Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and( ~( Q% c/ a2 [& v/ O8 f
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were" R7 ^" `; P3 x7 t# h1 Z' D/ U
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
; |7 W9 \# k3 [0 Kbankruptcy, they already have debt financing in place.
" B3 Q0 A- A* c5 ^6 R European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain7 E9 i9 q6 Q( E; U9 D% g6 ]
today.
N1 P5 G- Q8 R0 w" b Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
3 R2 Y# d& K B# ?3 cemerging markets have no problem with funding. |
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