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发表于 2011-9-17 13:16
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Current situation" d! A5 l+ r! I
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
: o9 l% N* D3 b$ \, |as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
" A5 ~& ~: [5 O5 Vimpose liquidation values.( K/ a6 r8 b- O6 L. A- C
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
) _9 ?* r9 O( k9 hAugust, we said a credit shutdown was unlikely – we continue to hold that view.6 X: o! R0 l4 V* l4 E
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension( P5 d" I1 z$ F/ B0 c* k" e7 _
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
3 O; l+ d0 B! ^
0 J& \+ F1 W2 j; wA look at credit markets' A. m0 Z/ c- o! b. Y
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in9 s! M" f! X% X3 t9 F
September. Non-financial investment grade is the new safe haven.
; a6 p0 h8 V* \ High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%3 K2 l6 N; ^: K. Y* u" O4 X
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
' i( o6 k5 P$ w/ D# q+ X, Wbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
' _ S- y$ O# `8 }. I2 ?access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade' I+ |6 b+ f% o, X- D a- [* B) W
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are2 Y$ q8 m/ k- ?# v; c
positive for the year-do-date, including high yield.! b( r/ Q, o+ Y5 ^ [2 J$ ^ U
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
( Z- k6 n) U) ` T8 V( ^5 _. X" Afinding financing.- Y4 W2 U$ m; ^+ u
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they) ^/ o# T* t: W2 P& n6 _
were subsequently repriced and placed. In the fall, there will be more deals.
$ u, [' E+ {9 G& k0 C Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
! i$ I; ]# e3 Q$ c7 \ M9 B: k) B( _is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were' V U6 f: K; K3 U% u* N! H
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for) J+ B' D1 L" j; p! M
bankruptcy, they already have debt financing in place.
( L- y. s! N" a p! S European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain* X) s0 g# d. ~' w; K1 S
today.
5 y( v$ [3 ~$ ~3 ? Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in0 ]% E$ M) J! Q' F0 u# G5 S- ~
emerging markets have no problem with funding. |
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