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发表于 2011-9-17 13:16
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Current situation2 B9 P' V! g& v0 h8 ]$ L6 [
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long/ h9 B% Q3 Y3 ~
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
. j# S$ x1 C! A1 o' m' o# Ximpose liquidation values.
! q2 ?2 \( p; Y N# \9 |0 N2 H: X In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
9 p1 }" l( e% I# a% W8 QAugust, we said a credit shutdown was unlikely – we continue to hold that view.
0 h$ D, a* G& V: M The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension- j6 e7 X. ]5 [5 D( r, n9 |
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.7 h; f% f$ d: H- M9 R |) t4 h6 g
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A look at credit markets
+ E6 }- x( E* Q! C% ?; b+ `# G Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
0 z' F# T3 a8 b. Y5 l7 [0 ^% bSeptember. Non-financial investment grade is the new safe haven.
U: r8 N0 U0 [$ U High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
2 w: ?. B% i% [1 r# X* othen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
( `" Q7 H; \, X2 c, G& c! ^billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have' H& {- e8 z D2 q
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
! m! d$ W6 y' y0 m& n* N9 [CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
9 r, ]2 W0 T9 R V( {' Npositive for the year-do-date, including high yield.1 V5 l# X# F6 r( V1 k
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble- R0 D. Q2 w- {/ N1 p5 C
finding financing.
9 q+ {: s1 S, A! G, `) G# O' n Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
. t2 Q/ i @. P+ D0 _( I* e! Swere subsequently repriced and placed. In the fall, there will be more deals.
% s' L. h$ F _1 v) f2 R0 Y" O Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and, W$ R8 L$ T* z" G& J
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were% d7 ?+ p- e3 P6 |. P; P$ `
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
: B) f$ |5 i/ Q0 s6 R8 jbankruptcy, they already have debt financing in place.
! C3 n: J4 Z: y. ^# }% e$ k0 ^ European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
7 s& F# t+ V7 X+ G3 T, h, E8 htoday.
7 J- m$ j- P4 s$ D" x Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in0 [6 w& C o" W& P( @* ]% K
emerging markets have no problem with funding. |
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