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发表于 2011-9-17 13:16
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Current situation
1 W/ h% X# s7 P* Z' `: v The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
3 D" R! B5 v/ Q" Sas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may5 C7 y. T$ c4 a! @! E }; X
impose liquidation values.
0 w/ T7 ]( v, h/ R8 q In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
! n9 B# A) C' [7 ^: IAugust, we said a credit shutdown was unlikely – we continue to hold that view.& t$ e* Q: W, r8 g! }( s, i- F
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension$ S9 C+ k: g8 w: Z# r
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.4 X- F- k( E, v2 Y( h: P
* S: A. e, Y! e7 V! K
A look at credit markets. [; P; n* R I6 o% o
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
8 T) @4 m7 l' N) k) uSeptember. Non-financial investment grade is the new safe haven.! A; E) i- F* _. d) E
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%% h, S& b9 y6 T6 }: z8 i" x) C
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1/ @5 p" r& C, O
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have! {3 Y( d# p) N5 y. m
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade: H% W. \% y4 j( s; a; c
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
5 H9 ^$ M# U, ?( xpositive for the year-do-date, including high yield.
6 }& U5 X; _6 O) H1 B Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
- |" _% C, u. Gfinding financing.: {1 ~- l0 H* L; c. c% J, p
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
+ r1 A. | ~5 j) {were subsequently repriced and placed. In the fall, there will be more deals.
5 s: f8 Q4 `- o# a( Z3 u Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and- ^* N; [+ q! G
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were9 D6 U* Y1 @) W) h$ x9 G4 u ?9 [/ S
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for; b' y$ w A. Q' e- V
bankruptcy, they already have debt financing in place., d( D( p$ _% ]7 |3 m8 O
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain" C V E, o0 u
today.' ~! W" P; K2 I3 }8 P& y* J
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in9 W5 V9 C# ~2 ~8 t) {
emerging markets have no problem with funding. |
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