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发表于 2011-9-17 13:16
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Current situation6 p+ `% ]5 @/ |/ t7 z% V) |4 b0 y/ m
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long' }% }4 m" P# u
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
) O0 n% r# u; C; f- O8 Dimpose liquidation values.0 x1 _/ x3 g, M [* x
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
) m" d5 }( ^. ?) s. m7 l* DAugust, we said a credit shutdown was unlikely – we continue to hold that view.' v2 d5 P( t5 S7 `
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension+ y; Q, g, c! V H/ h9 |
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.+ p' s0 K# F4 T# o/ |0 m
$ J+ } Q- P7 f" QA look at credit markets
! B( Y5 y9 w! M4 O* }) D8 U Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in I; a* p9 m% u: A" y2 U1 U
September. Non-financial investment grade is the new safe haven.- c& s. @' w4 P- H7 \
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
/ ?. T9 G+ L" `9 ]8 b/ [% u3 wthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1. \' V7 H8 |& E9 \! b
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have* B$ B" `6 }" U7 @8 u% a) J6 a' e
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade% A# G/ A- Y; f' c# \% T& Q
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are4 E! n" e1 Z7 X' u5 q( {
positive for the year-do-date, including high yield.
8 q6 ?7 |7 U3 J- W: W& c( Q% I Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
7 N7 a" H& {: S3 d1 p/ mfinding financing.
. y, P4 w/ R" n! j; N& b# i J Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
k* Y2 K( |/ F% A1 f, ?were subsequently repriced and placed. In the fall, there will be more deals.
1 x6 f, V* Q2 T3 Z5 j( @; e. z j Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and+ V: }- k- b9 }" l' J! ^, S
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were$ B& {1 y* v& O2 }
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for% C& \$ [9 L) R6 T! }
bankruptcy, they already have debt financing in place." `5 k. D$ A1 F. k4 h8 o
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain: C* e$ ~9 a- f% [2 f3 u
today.; m7 K# q8 M/ b5 N4 O- G0 S- h
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in4 G( U* M4 C/ Y3 k) G
emerging markets have no problem with funding. |
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