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发表于 2011-9-17 13:16
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Current situation" Z- K( j1 [3 x6 C; n. ?
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long# v. C$ Z! Q7 x: m: g
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
; C- M7 ^* ]3 \3 A) _impose liquidation values.
' ` b5 A/ _5 V) P; x" ? In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
8 I! A# c8 a U; g: r, e* Y8 L( ~August, we said a credit shutdown was unlikely – we continue to hold that view., _0 J: d% o. C+ c+ U) p0 }8 D
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
' h/ m* B, ?/ k% r8 _$ p) pscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.( M2 @ e+ O. B, g3 M. n2 f
; {9 R) o5 B* Q' HA look at credit markets/ y2 r0 g6 _% t3 `
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
5 ~: r8 V T6 @* I" @2 C& Y: t: @September. Non-financial investment grade is the new safe haven.
$ ?* f, |* X8 k1 g5 q+ Y2 U High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
0 v7 w+ p" }: J6 C+ jthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1+ g! q, n7 f5 y
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have) R& t% ], l/ p# F+ C0 p% I$ G
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
$ `6 o! E) D% D: U& lCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are9 ?" }& O# v9 v/ }3 t
positive for the year-do-date, including high yield.
8 ?& t Y; }% g( m$ l1 j) q Mortgages – There is no funding for new construction, but existing quality properties are having no trouble4 s4 r, L) ~8 _& N
finding financing.+ e' P% [& r( G5 O
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
6 n2 R8 T: q$ l x9 ?were subsequently repriced and placed. In the fall, there will be more deals.
0 J: L* s+ |1 @1 j3 d Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and1 q& O6 D( V3 u+ L; R
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
8 q; y4 X' J$ p+ x* P7 Ygoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
" G0 Q2 R5 X3 {, U4 Zbankruptcy, they already have debt financing in place.
2 c# ^. L' l( O+ D0 i1 ]9 U European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
# q+ j+ s5 e5 Btoday.5 x: t5 A/ f$ H
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in1 q/ c! _/ Y& S' B: a5 g: s
emerging markets have no problem with funding. |
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