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发表于 2011-9-17 13:16
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Current situation2 m* g3 F. E) E( N" \& U
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
9 V9 S+ U9 ?" q* ?- Uas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
" W" e# D! ~1 kimpose liquidation values.8 h. C# C- z8 r1 \5 F& C Z5 f
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In9 o' Z- Z( ]; Z4 d e4 B& V
August, we said a credit shutdown was unlikely – we continue to hold that view.& T- w$ \ ~& `. L2 t
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
0 r0 |3 e7 N2 Y" {scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.; F2 ^$ t# \6 a# M. @
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A look at credit markets
/ y, L m# {! D4 l5 T$ c5 J9 ` Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in+ c" s5 ?1 i7 V* R
September. Non-financial investment grade is the new safe haven.
* _; S5 w3 E. ^7 ?" z; x! J) v1 F High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%" \; K2 M6 u% g4 I" O: ]7 _
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
# `3 Q0 P! S/ P; a% G0 ~+ nbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
, P4 b2 Y. {0 P& Aaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
) V- y3 ^8 s+ z$ h7 ]+ M, B6 A- lCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
4 d. D9 y$ p6 y0 l3 U; z: c5 C7 ipositive for the year-do-date, including high yield." x9 @) h! d1 y- ?
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble! I5 s+ J* j9 ^+ @' v! d) i, `
finding financing.
. P) x1 `5 w" y0 }) f Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they N, Z% T; J$ a0 j* S, n# J$ k
were subsequently repriced and placed. In the fall, there will be more deals.
; U( K: c( Q; v; O7 g3 [/ L0 b' R Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
7 T! x" s: p3 [is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were$ L( p5 F) B* L" }
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
, d: [7 D* {/ A( z# `8 ?( ybankruptcy, they already have debt financing in place.
& E5 p) @4 J: B: T4 i European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
6 \: Q3 J+ B7 Y3 Qtoday.; s% f5 R7 A8 E( S# G
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in- Z4 N3 f1 @" y* `
emerging markets have no problem with funding. |
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