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发表于 2011-9-17 13:16
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Current situation! H4 h7 B2 g3 [4 o8 w- ]8 _. A
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long \% r& s# ? C" U& H$ k
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
0 X9 q7 l' U. Eimpose liquidation values.
^3 ^! O6 H$ k, e/ i In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
2 G M V* b3 U* ^+ I* `$ SAugust, we said a credit shutdown was unlikely – we continue to hold that view.
3 K9 }5 A# w' p1 p: W+ ` _ The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
0 G3 [9 A& @2 {) W3 dscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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8 w$ u* l% }# h% Q0 y0 O: eA look at credit markets" o3 S( A# ]+ w! R1 K1 c+ }- r H
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in: Y, F# \: n8 o; ?& w& c
September. Non-financial investment grade is the new safe haven.
8 M' P- ^& L' o+ i; S) p High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
$ J5 \# Y: ~# S$ e- Fthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1( X8 b: K3 N6 K
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
( h2 Y" T3 s% Q; faccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade/ o( Y8 E8 [9 ]! ~, G8 G1 ] Y- H
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
3 R4 N% N5 n- d, w8 Jpositive for the year-do-date, including high yield.
8 Y2 q! I6 {" c, U/ u& H, h2 z8 s Mortgages – There is no funding for new construction, but existing quality properties are having no trouble1 n4 i) V3 p* ~3 @- I. m6 H$ k. f
finding financing.
" \$ U- ^ R4 [8 I w6 }# n Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they2 @/ z# ]. H# e2 x: m+ x6 g
were subsequently repriced and placed. In the fall, there will be more deals.
. |# i7 o1 o* h& Y Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
: C+ R+ Q4 Y$ M. ~/ u% nis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
8 }4 K' V% B! ]2 D0 d4 bgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for/ b) i" ^5 Q5 W0 v$ ]* \
bankruptcy, they already have debt financing in place.2 m5 x9 ~/ ^$ w# g6 [
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
. C# r, Z$ P$ [% [% H( i3 Y: etoday.: W1 |$ \. g- u- H% R
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in* j( u1 N: k& @, Q5 P
emerging markets have no problem with funding. |
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