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发表于 2011-9-17 13:16
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Current situation% O0 z K: Q( W4 U: D: E3 ?3 O
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long4 y) `7 c# q, f+ n$ K
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
& E1 b0 _1 \" E# e- P4 Timpose liquidation values.
7 }. N# h, ~1 O& c In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In/ P/ y# Q# T# c0 R4 o# T5 C
August, we said a credit shutdown was unlikely – we continue to hold that view.
( T+ m. s- g& L" Q. Q3 R The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
! C4 F- s5 _6 ^+ sscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.3 [4 e; Q! t. j/ `1 f; r
' D5 W9 @* ?& ]3 a. ?, E8 lA look at credit markets
4 L# u1 {1 k/ N$ y3 U5 H( c! | Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
5 q5 Q; B5 h" @# c: I2 nSeptember. Non-financial investment grade is the new safe haven.
+ l7 ]1 I, m2 _( S% ^7 n High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%& M# h" s# g5 T+ w, @: O
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
& b: k7 t/ i* f, I5 Rbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
( Q- h7 Q/ P( ^' Eaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
7 A* f V! ], QCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
6 f; L$ d9 N: a/ _positive for the year-do-date, including high yield.
( r" s) X: t4 _$ \& x# V Mortgages – There is no funding for new construction, but existing quality properties are having no trouble; [# ^( \/ ?! k0 z
finding financing.
% L, E3 @6 m) q7 t v/ M Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they8 [3 s1 b- P8 y. i" D" j1 T* `0 K
were subsequently repriced and placed. In the fall, there will be more deals.
9 V1 }' _. M. A" l% C Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
4 B, l7 E+ S+ V q1 ]7 Q% ?4 J' pis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were1 w1 L4 w; Y4 o9 E
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
; E; w/ @: m' d1 X% p) d2 {bankruptcy, they already have debt financing in place.! S3 q$ s( X) n
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
" a- w- E- }- f: C2 H& }* Qtoday.9 X* M7 Z" T4 |) n) b& E
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in5 [* v5 m8 e7 Z# Y( M2 s
emerging markets have no problem with funding. |
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