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发表于 2011-9-17 13:16
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Current situation5 r' j8 p- _6 x' c, x6 f1 O5 \/ {
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long' W8 ^9 w k* y' ?: o" O
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may, E! X2 ?3 Q3 S: {: P8 ^
impose liquidation values.
) H, A7 ] f9 y: V In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
+ i, z7 l) w$ Y0 N9 QAugust, we said a credit shutdown was unlikely – we continue to hold that view.
. m* U) J0 t- t6 z4 c- y5 T* P The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension7 x: r8 w& |& H3 i7 @0 k
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets./ k3 i. F4 a; D+ Q# e1 K
& H+ u4 |" l6 tA look at credit markets# n3 e+ J! x! A7 c4 w \
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
Y3 b# q/ w* z7 FSeptember. Non-financial investment grade is the new safe haven.$ @1 Z0 g8 F3 r, M/ _1 z
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
( C9 u8 d+ ~. H1 w) C- s6 wthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
; e5 ?1 Q; L2 W2 lbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have `( D' S5 U( A! T# b. p8 j
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade. T7 w9 T, ]9 Q" @* ~/ T) ?- Z4 k
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
8 v1 _2 A. ], J2 T% n. u7 z- Mpositive for the year-do-date, including high yield.
) U* u3 h- d4 r0 c: U Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
1 b0 E4 K5 A1 k. ~finding financing.
" Q, R6 @8 n1 }% Y' [$ o) ^ Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they3 U$ p! d# M& f
were subsequently repriced and placed. In the fall, there will be more deals.
% J$ K* n7 F# ~0 V1 W" p Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
( Q7 d# N6 @, v" F# Nis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
; ]* V! l9 o* P3 U, ~9 I. Zgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for9 M, r% @, V k, {8 \0 u$ v7 o
bankruptcy, they already have debt financing in place.8 Q& t0 D5 u& T# o/ ]4 g
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
3 k) a" k$ O, c* Itoday.6 P7 b1 C, t; L* D" G# N
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
3 J- t- e/ N7 |% k. i+ Qemerging markets have no problem with funding. |
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