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发表于 2011-9-17 13:16
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Current situation3 U9 D; x6 @3 Z! Z% _$ F$ q6 l- H6 ?
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
7 s5 h4 }) V: tas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
9 |1 F- {% |0 V6 fimpose liquidation values.
& P* _4 o8 `0 f+ p In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
+ C4 G! n x% ZAugust, we said a credit shutdown was unlikely – we continue to hold that view.. |: c# o. z; X/ b1 i
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
5 X4 x5 }) r, N/ q, M, l. y8 ]' Zscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.8 J! Z; h8 a& B- p/ l8 C
8 Z2 M$ \& Y: h% D7 d
A look at credit markets- F' \, r8 S. u) y3 o6 w; A( R& h
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in2 M: s! i" c' G) L$ K
September. Non-financial investment grade is the new safe haven.
& l+ q7 Y& {4 N High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%$ \2 W$ `' g0 U% ]4 r
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
3 p" l& u% h+ q; w; s1 E! E" f% kbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
+ z4 Q/ }( N2 R9 Qaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade n( [% g! f/ s
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are2 |: k- f/ d# }- d3 V
positive for the year-do-date, including high yield.
& I( ~1 f! M7 v Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
8 K4 K1 L7 F6 e. d: j8 x4 Dfinding financing.
% P6 ?" t* O( c Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they2 m+ Y4 O0 G7 \
were subsequently repriced and placed. In the fall, there will be more deals.
8 `7 j9 g" D5 o6 p4 ~/ ? Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
3 _6 M2 x$ Q4 r2 v9 @. ~$ E! lis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
/ G- q( r) c3 H8 Ogoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for3 s) v2 n* p( w7 p2 M/ Y1 p* p
bankruptcy, they already have debt financing in place.' s: }2 p3 g8 c& r
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain, Z/ A, a ^9 o4 w$ X$ S {7 Q
today.1 r, ^ f- L5 ]4 F$ ?8 @! p/ A' M
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in8 u$ [6 ^ N4 u$ Y2 Y6 v2 U
emerging markets have no problem with funding. |
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