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发表于 2011-9-17 13:16
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Current situation' ?) B9 L- m, v
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
( O, k Y3 i; {/ ~as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
8 F* g6 h. h2 P. kimpose liquidation values.
+ @* B, R0 o! B7 d In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
; W8 P4 |+ x+ `: e$ PAugust, we said a credit shutdown was unlikely – we continue to hold that view.% k2 X8 j; i; Y: m$ B
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
9 ]& V. u5 ?9 Q% q# Sscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
9 N* V; n) z- H# B0 w1 E) l0 _: w7 U, \$ Z8 u, }% y3 u8 w
A look at credit markets; B9 ~5 V; G8 y( b# U+ ^
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in: S" A5 t& @" i* s/ ]5 M* j/ [
September. Non-financial investment grade is the new safe haven.
h4 E9 j( `9 _2 y0 X5 \( }% Z" ` High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
; S3 X, X( V& n4 E. F4 athen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
( E! s" V: a! o# abillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have" {. ]$ y. Z" C" n" h! Y3 U
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade& S/ H! d& A! Y1 E. }7 }$ P
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are& l5 F+ } V( \6 |, l) ] O' q
positive for the year-do-date, including high yield.6 V) k( \' B! N) [9 a, L6 }% N
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
9 e4 \& l6 ]4 m$ D" Xfinding financing.
j# D/ w" H& F- ^! [. b/ S+ I Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they0 T$ ?/ x+ x" i: K8 e& ]5 x
were subsequently repriced and placed. In the fall, there will be more deals.
& k0 f# u- H1 ]2 S Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and; l' Z4 G1 w2 @. E" f
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
1 ?0 R3 a/ n0 B, I8 |going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
( F3 Q: b2 H I" J' @( tbankruptcy, they already have debt financing in place.
" @/ D9 ~) X0 H1 c6 N8 d European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain, u& J P2 X) L) V9 v5 z
today.. l) d( |- _, W* L7 z
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in5 [7 \6 M% `7 m
emerging markets have no problem with funding. |
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