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发表于 2011-9-17 13:16
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Current situation: p+ @1 y' j: v4 J% I8 l
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
; S, E4 ?* m- z3 @as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
3 e6 g' m" t2 s0 l& cimpose liquidation values.
( Y6 B) ]: C$ O* ~* P% Z In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
% m/ C# s" S* \6 ZAugust, we said a credit shutdown was unlikely – we continue to hold that view.+ [: c+ ` L4 t. R h! i4 M8 e, k
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
6 k9 l: s. @4 Sscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.+ ` u9 N3 `/ V; o# `! F
- J; G( s$ Q5 |. a1 r# t3 A/ a$ MA look at credit markets
2 @9 Y" a& D0 |' a% p Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in9 T, Q* r3 j( r7 z, ~4 l% j* r
September. Non-financial investment grade is the new safe haven.
" e, v' D! ] K+ y6 J# e# m High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%0 Y+ i/ L. X O, I" m
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
+ d6 z. s* n) wbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have: n& j" P5 I" ]7 v
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
2 F" Y* x! ^# QCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are- G% t. m- I$ |, n& Y2 V
positive for the year-do-date, including high yield.* R: G" P6 x+ x" M( l, G0 K
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
* X% E( T- b4 c) W4 z, b- Ffinding financing.( z& m3 `5 }4 A$ q
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
3 ]- U& X7 F! cwere subsequently repriced and placed. In the fall, there will be more deals.$ ^. V8 s. U" R$ Z$ ~
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and1 }/ l+ }3 e# t8 A9 n' {( o1 c4 _* I
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were W5 a% i2 F; ~( J- j' O
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for9 H9 d, d# C! Z. d* L% o! G
bankruptcy, they already have debt financing in place.4 d6 L+ R4 e- I9 j( e/ D
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
, r5 j, O! b# n3 Ttoday.
) \) i- Q& W/ j8 S Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in( }% M0 w$ v0 g
emerging markets have no problem with funding. |
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