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发表于 2011-9-17 13:16
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Current situation
! y- q$ U7 z2 x# A, \& q. P The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
" g+ j7 \2 e7 s' |: N8 cas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may! }# k. `& T6 D( F; P$ u
impose liquidation values.
! L3 K' P3 z# T, y In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In' |/ L! E T5 a( d' c
August, we said a credit shutdown was unlikely – we continue to hold that view.! q. G7 }0 ?+ {* w8 @
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension7 O2 \' L6 n E2 ~! b
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.- x& I- S0 a) p; c7 i @( E; p
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A look at credit markets6 G% y9 v9 O4 ]; E# H
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
* A4 _0 Q0 C+ e; PSeptember. Non-financial investment grade is the new safe haven.
& U; G6 i3 b1 W& @$ x! H High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%1 a+ h# v$ E$ x1 _- w
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1$ k5 y% g$ P0 G* n0 k6 }
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have2 _4 |% x. w& k
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
8 m9 K& H& \* @; ?CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are/ k" W' V5 A' G7 m
positive for the year-do-date, including high yield.% Y5 W; y6 X- d* q% T* [
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble% T5 B' \6 W, N
finding financing.
0 V. ~% o4 x$ s; f; X Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
% [' O' R! |5 ~9 Q6 e% h# e$ ?were subsequently repriced and placed. In the fall, there will be more deals.
# L# S- C ~1 F3 g: e* n Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and f: `! T" b5 D/ |3 r; {
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were7 O. V; z+ k H @
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
5 w, ~/ h$ n& }3 J' ]bankruptcy, they already have debt financing in place." ?. F, T6 Q: M$ H
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain0 m# O! p% }+ e/ O) q& \
today.( @" @/ B. K7 k) g6 b
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in' ~8 R- K+ w; I1 Q
emerging markets have no problem with funding. |
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