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发表于 2011-9-17 13:16
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Current situation
. g( W5 K' i9 g The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
! d; [5 c2 e/ q( c. g- k i/ p# zas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may2 X' {0 w+ N2 q; ]+ y
impose liquidation values.) L- p% I$ m' n4 y* r' Y- N1 w+ [
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
8 b1 P7 _9 j" {1 y2 o. t; F* s- fAugust, we said a credit shutdown was unlikely – we continue to hold that view.
+ u- q+ E; V8 K5 Z& @, z The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension. @; q6 m7 `, J: d% E1 V. y, E: ]+ @/ R
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets
3 Q( k& M% O) O7 M Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
3 P2 P- d6 Y5 V, }0 \$ PSeptember. Non-financial investment grade is the new safe haven.
% f& t6 f& Q: G5 P; F' A High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%$ F, Y+ ]0 B1 j, {# ^
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1 |' B% y4 i; P* g% | p
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have" b! |8 ~0 t1 X) o) e1 j+ w. c
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
! m/ L9 B2 Q0 F8 f8 t# K8 wCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are! z$ a/ A( X* Z: K( f6 {( ]
positive for the year-do-date, including high yield.5 W7 p1 e2 Y: g, p% `7 L/ m
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
" ^/ L3 J6 d+ Rfinding financing.8 R# @; p$ T8 q# S5 S" H s9 k
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they' y' k) | \! `$ L, s+ g% w1 n3 y
were subsequently repriced and placed. In the fall, there will be more deals.
J1 y; [' X8 s& A Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
' W; s" }* ?1 O- k$ K1 F) ]7 \is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
; a& i6 X3 f6 Igoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for' D" z- J. v( l# ?! M5 j" V0 a: o- n
bankruptcy, they already have debt financing in place.
# _$ J' t3 I o6 L$ |4 W+ Y: L European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
; D- B- D( w0 H# Y3 Q, itoday.
" ?: g; x2 w0 l: D/ O& i Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
& o3 C8 x. `% e0 ^( t5 I( nemerging markets have no problem with funding. |
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