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发表于 2011-9-17 13:16
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Current situation. y3 N$ t1 \$ m$ v4 H {. X" |+ o
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long$ }! ]1 R6 a* j8 p" ~, p- x
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may! H/ b: {4 y8 n1 P" p
impose liquidation values.
! j2 ?! p. s8 V4 G In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In5 S8 ~2 Q9 x, v8 r( F
August, we said a credit shutdown was unlikely – we continue to hold that view.6 ~6 n+ d, T5 Z7 V V
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension2 J. z! [8 x$ D1 L0 P a
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.1 J% [' J# t& G
& x: A |+ J/ w$ }$ K( e" h% ?
A look at credit markets
) B0 }. M ~4 d* @3 k( `: l4 ^ Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
* _0 B- d- }$ A- ^September. Non-financial investment grade is the new safe haven. l- y; v* Q2 R0 u% I
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
; ^5 Z" O, L0 c: y, C" \7 L4 Zthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
6 ?1 r0 n! \7 A2 u% k5 ebillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have" d% t V+ [3 T! I
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade: k2 I0 V+ C% g
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are0 t! ` W3 v7 ?" L
positive for the year-do-date, including high yield.
; u O7 V5 b/ R, {3 i n p; ]. s Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
: {+ x2 R4 W4 b5 Vfinding financing.
7 K( o3 @6 M, K6 D! {5 U# g Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they4 \/ \. s# C. |8 U3 X# v
were subsequently repriced and placed. In the fall, there will be more deals.
" W7 `: i& S4 w# I- X3 j+ G Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
$ s3 _0 ?; P" Y# y: ?% q; Sis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were$ p0 \( \ j2 B& h+ q) y: @) X
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
+ ^8 n- L$ J4 m) W4 o. {8 h( Ibankruptcy, they already have debt financing in place.9 m! `: S8 _) n: I2 B
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain8 Y' R6 g1 c0 Z+ V
today.
% T" C1 t3 w& e$ A% J1 H1 @ Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in ]2 R5 ^' M5 f6 z; J: L
emerging markets have no problem with funding. |
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