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发表于 2011-9-17 13:16
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Current situation+ P6 f6 b, v6 x8 o! C9 N0 p- {
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
5 i2 n5 l2 d# F5 N6 Q0 a2 \. u2 Qas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
; J- V4 Z0 F$ \9 A/ ?4 Eimpose liquidation values.
% K* r0 O9 \& F( W2 O+ I! g5 P In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In2 v3 [. T4 R5 o, k
August, we said a credit shutdown was unlikely – we continue to hold that view.2 X" ~6 { Q. c5 k; _
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension; u( W- ?; X \& }) Q* |) `
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.3 Q' v1 ~, \* J8 m# c) o
4 F' R" D4 I5 v( {& uA look at credit markets, P/ ^" m! M+ r! k7 p+ M% ]7 s" b
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
. P$ d i( x7 M( U; [# ?' FSeptember. Non-financial investment grade is the new safe haven.4 u( r* w. H9 z- \
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
- X" U. T& F d2 U! Ythen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
0 Q2 J) P8 e. }/ }: x8 f e, q0 jbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have' d) [5 o) }' f% @3 i; U
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade; G. I* c/ D9 U7 W& E# {/ j7 b
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are8 {9 C; Z/ M* I. G6 i
positive for the year-do-date, including high yield.
( x0 G: L1 V2 b ~ h, x7 P# @ Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
8 T$ O" {) v1 b9 c+ cfinding financing.
* r3 \2 R! N( R$ ^0 x4 b& v Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they6 i, k3 a. a: f5 E% z" ?+ w
were subsequently repriced and placed. In the fall, there will be more deals.
! R# p9 O/ }4 h8 ~1 B# z Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and+ h- @ Z- a$ M
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
& F) K6 Z/ e' v1 h r0 Pgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
( \4 _7 C! x! F9 p. j' k9 r: kbankruptcy, they already have debt financing in place.
$ U7 `( h4 w, G0 W3 r6 w European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
3 m% L5 a7 e# S' Gtoday.
0 s0 q6 | Y) A* Y. I Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
# M* k& U) I8 ~- j/ O lemerging markets have no problem with funding. |
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