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发表于 2011-9-17 13:16
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Current situation1 ]0 r4 k1 ^/ Y6 i
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
/ M z) J1 V9 g7 L( M: Z6 g8 W! oas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may9 v: ^5 z# H& o/ {4 `' Q
impose liquidation values.* Z: \6 w' G9 |1 b& T+ `8 j4 T
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
0 @2 }! e; H" p; o0 V" z8 nAugust, we said a credit shutdown was unlikely – we continue to hold that view.$ B/ Q. A5 b* n" c
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension8 j( l0 Z' {; w, I' N
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.; {5 S9 O) c- s; t1 t( g4 D
: n6 m5 H h; T m$ iA look at credit markets e; ?. [2 J4 f/ ]+ v$ n' p
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
) {3 ^9 @/ \3 q) K" PSeptember. Non-financial investment grade is the new safe haven.
. e; v/ z3 Y4 J- q High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
G; N" W, Y- ?3 pthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
( ]. N0 R5 z' T- \2 g2 L$ ubillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have7 |$ C _$ p: r0 v, V# W+ `- a
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
6 h. W1 w( K9 L" a2 |CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
) p1 }6 }8 [" G6 \) d+ vpositive for the year-do-date, including high yield.
Z4 f5 H. h' ]4 o! v/ @ Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
3 F+ C/ e+ H4 H6 E- Ofinding financing.
, Y; O9 o1 m$ j! ?1 y Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
! @( {2 A, a A B `+ ~8 d) L: Cwere subsequently repriced and placed. In the fall, there will be more deals.2 I( C: j, |& ~- [3 B9 y% z
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
$ }4 |% f* G, D$ Vis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
3 e- M& R# P5 z% Y4 Y. Zgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for4 F( v$ j/ ^; B4 c% G) P7 k! M
bankruptcy, they already have debt financing in place.
4 A5 ^0 |2 S0 @4 {3 l/ \* H0 L European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain7 `1 ~% X8 c! s' \! N
today.
0 S4 w0 ?( @2 A1 i+ w5 K Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in' X+ `4 {4 T' r0 U
emerging markets have no problem with funding. |
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