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发表于 2011-9-17 13:16
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Current situation" W8 o6 a3 B, o, U- z+ |
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
1 \+ k7 y3 ], B a+ @as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
. w% {3 m# f- a( |& A: p) E( L& Zimpose liquidation values.
6 z+ ^3 X! G/ i h: a! D In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In3 ]- W% | |# J% U) z
August, we said a credit shutdown was unlikely – we continue to hold that view.1 v1 T( |* M* U" [
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension' w# v2 { ~# o
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.8 h. \! A' F$ r1 z6 T
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A look at credit markets$ L3 l4 ?. B+ d0 S( \% ^0 }
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
B+ b M0 Y, Q$ BSeptember. Non-financial investment grade is the new safe haven.
" w$ n" R2 L1 Q3 ~0 n High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%0 W- | ~' ~5 _/ O
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
8 M# V( L t$ Wbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
) o6 c+ X8 t( s' `, U1 Q# |% _access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
1 w- _+ ~: ?/ {6 `) K& u, nCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are6 i% J$ Q2 A5 g6 \$ [7 x2 s C/ o! d0 L
positive for the year-do-date, including high yield.
) t: {7 v& E1 R+ J2 M5 R Mortgages – There is no funding for new construction, but existing quality properties are having no trouble( e& ?5 ^6 J9 X
finding financing.
! ~/ b4 e R @# W. o/ F' w Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
. k, E& X3 Q& l( Xwere subsequently repriced and placed. In the fall, there will be more deals.
; w8 K- N8 f& h4 w8 H$ s [ Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
3 V2 ^0 J, _ l" o' E. wis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were- O8 e; }+ p; k4 R
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
6 A0 p% j1 P& V/ l1 Q4 zbankruptcy, they already have debt financing in place.
8 O) [' T& I1 i0 l) p European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
) f- d1 E* N$ y a' \7 qtoday.) [( o, q' R$ V9 d
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
' K( m7 v# u0 ]) Aemerging markets have no problem with funding. |
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