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发表于 2011-9-17 13:16
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Current situation/ b6 [ s s& h- u; x) }; [
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long5 i: v* t' ?& ]0 k3 ^
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
1 c$ C" {# q1 J3 v1 iimpose liquidation values.
$ k* Y% T$ c; Y. u1 k In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In8 T) A v7 ]. Y: _
August, we said a credit shutdown was unlikely – we continue to hold that view.
. |- l+ e: t/ X* _0 O* Q5 N The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension8 R/ F% p" [$ s/ o' v- G3 Z, |
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.) x( e! Y9 `3 X6 z, E3 L
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A look at credit markets* F9 k0 l* W1 H( _1 g8 ]4 o- X8 K* |
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in0 w5 S. o+ F3 q4 a6 I8 l, c7 E
September. Non-financial investment grade is the new safe haven.
* L: [- Q& w' L High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%" g% |: b% w1 C2 k# K$ j
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
. T5 ?2 N8 D/ i0 Fbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have* _. _; d3 u2 d8 d. C" X
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade6 c0 V" T. E" f" }5 r, n$ v
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are" W# U" @- z" {) H, r9 H/ j W
positive for the year-do-date, including high yield.! N, k7 e4 U: S- v0 [8 h
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
3 h7 Y8 L1 H* P) x* F( Zfinding financing.2 m# T& @7 k- A5 }3 t
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they/ Z7 C7 C! J6 h Q+ \
were subsequently repriced and placed. In the fall, there will be more deals.
4 q8 V! ]0 q2 G7 e6 D6 X: | Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
* Q3 k, w' o$ T# Z5 Wis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
: w: U7 C9 \8 i+ ]9 L$ a8 l; u9 qgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for6 n9 i, Q7 R, }! n& y
bankruptcy, they already have debt financing in place.- _( }: ~; c, `: m7 N- t
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
4 _- [7 A* Q5 utoday.# x+ j& ?5 b4 k* r& [* {
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in3 I8 v% T* e: t9 F2 W) W
emerging markets have no problem with funding. |
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