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发表于 2011-9-17 13:16
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Current situation! S. N$ r8 o/ | |
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
9 l6 x7 I H" ^1 O+ s( N0 gas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
) {' J: d6 A7 U* z0 u5 w5 N+ B2 \% Nimpose liquidation values.; Q6 I3 U5 t! c% ?3 c' {( t0 Q
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
8 Q" ]' x5 i# f6 e, JAugust, we said a credit shutdown was unlikely – we continue to hold that view. W9 }3 T) l, |) b! ?( \
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
; V1 g: P( s+ Q& zscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.3 c6 N: |# J7 p
; b" S' C4 V# x |A look at credit markets
% k8 D) Y- L8 }7 y2 e u ~0 S+ j Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in$ h) h1 `. B& l+ |
September. Non-financial investment grade is the new safe haven.
5 H! R* ^4 Z- U6 s8 G$ M# i High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
& m' h3 L& t. Sthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
* e- s' q) H. R0 o8 {billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have" I* ~, }# x6 \" }5 N; `( g
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
# i/ M& w1 b- r' M* w: |3 CCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are0 [5 h& _0 ?- a- ], _: b
positive for the year-do-date, including high yield.9 O0 Z6 W s0 I& T/ y6 G
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
2 T% K# j/ L% Xfinding financing.
* ]2 i5 J1 [( X) b! } Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
x1 H% l7 J9 ?were subsequently repriced and placed. In the fall, there will be more deals.
j1 O! J0 U4 O ` Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and! k% X! E, i1 t6 j% u% k4 p& u: Y
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
9 Z* ]% x& \' F" Y8 ^- ~1 E: Z- b6 zgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for1 Y/ J/ a/ }/ {6 F6 x
bankruptcy, they already have debt financing in place.
T4 _# C/ r+ p European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
, J) ~6 X( W% Etoday.
( _, z; j v6 v0 B4 n/ Q Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in9 j, j _; q4 L6 W% x! |
emerging markets have no problem with funding. |
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