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发表于 2011-9-17 13:16
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Current situation
~9 [' a! |; ?( _ The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
0 ]0 ? a8 x% O/ Q0 f; o& cas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
/ [8 x) W! }5 E3 L8 i3 \impose liquidation values.
$ \& t- W5 i2 h% ~! C In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In3 P# T9 W" e) g2 F9 W; M8 o
August, we said a credit shutdown was unlikely – we continue to hold that view.- b8 u* E$ W' ^& W9 o# t i
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension; z' K @9 G4 O$ u
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.' _8 v5 N7 j4 l3 j5 |
" f: Y: W8 h9 m; hA look at credit markets
3 Q) R' q/ }6 u* e& R& o Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
6 U; y9 Y% f$ w9 \September. Non-financial investment grade is the new safe haven.
7 @' ~( b0 P3 W4 T High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%* _ h6 P* z1 {' U" e
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1' P1 |6 N/ P0 H9 }& X; q9 }
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
" K6 u: D7 \# X- H0 s+ Jaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
6 d! {7 k) V2 |/ t0 s6 t/ p+ P2 k6 @CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are5 O9 }; C* E' o: U- @
positive for the year-do-date, including high yield.
: }( {3 V- \ f Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
5 N% W, _! o' l; Hfinding financing.) _2 b8 E' b- e$ n4 M, ~) C
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
* h9 g9 _6 m9 D& o/ Y( dwere subsequently repriced and placed. In the fall, there will be more deals.
4 N" X9 ?( X" W, {. E+ v Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and% r& t: x& U0 S# ~3 Q) w' F% {% Y+ j
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
2 ]# F8 @% N% X5 r4 h+ zgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for; g7 i8 ]; W! o1 |* p8 W' W( s# t
bankruptcy, they already have debt financing in place.! ?; ^6 J6 e/ L3 y( A
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain/ {! o+ e- O" X0 q
today.
% O9 P1 r K7 H8 g) c6 z! V! y4 I. d Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in+ g( X0 f( E+ X8 w' O, Y n
emerging markets have no problem with funding. |
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