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发表于 2011-9-17 13:16
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Current situation
/ ~: ` W5 K$ T$ i! X5 O The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long& T4 `2 i6 _. b' }8 d1 g$ ^% d; _7 I
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
) b4 j/ q/ _7 t L5 ^. _: Kimpose liquidation values.- L2 W8 u0 H* V( v
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
+ g) t, g9 X( U/ M) FAugust, we said a credit shutdown was unlikely – we continue to hold that view.8 g/ G& f/ |7 v2 H
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension6 }. k% X0 `0 c/ {
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.6 J$ `- Y/ `' E- i( ~! ]
/ F G' y" n3 o& EA look at credit markets
( [( P- W; m; }! ~, x4 Z Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
4 O0 {. j: t0 i% q- ^$ R- {0 a# e" jSeptember. Non-financial investment grade is the new safe haven.
8 r$ l) M6 A& m6 G, d. V/ K! @ High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%$ c2 X" Z/ T# B) Q I" X( V, O
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
+ F1 U, `, c, L' Bbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have% }3 J; Y1 h7 N: G0 K2 M6 R! }
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade; }8 o- F, h) M9 r8 y# w
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are8 @# R, G6 e0 _. I- Z! q
positive for the year-do-date, including high yield.. R; |9 F, E2 Q4 J0 C, U
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
- D3 t) ]2 Z' ^% _/ p& Qfinding financing.
) I* ?& l: _0 l/ ]& y: L5 ` Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they; P0 o8 B9 I, } A4 q/ x! A$ _
were subsequently repriced and placed. In the fall, there will be more deals.
/ D8 g$ L! i" W6 ] Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and* i0 P$ Y j6 W5 ~
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were+ o' Q- c; C1 s( [4 t* Y, p
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
1 b; F( r* _7 b& z* ?bankruptcy, they already have debt financing in place.
" S# b& C1 O+ y- L' b; p2 Q+ i" N European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
/ B: J* y: ^6 X0 Jtoday.
3 r8 E! a! H) `5 j3 R8 M Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in; G1 L, T, t( F$ ~+ F* k
emerging markets have no problem with funding. |
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