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发表于 2011-9-17 13:16
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Current situation. e$ O# R) d( L! F# d$ s" E' M
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long# G! N& S3 m# Z$ _1 A
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may/ R n0 J4 j* n
impose liquidation values.
5 x# K+ P) b& Q In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
5 r. T8 G) U( g+ |2 v5 WAugust, we said a credit shutdown was unlikely – we continue to hold that view.
/ i5 k$ h5 ^0 n. y- U0 @' A The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
1 S3 y3 C( N6 S, c0 v/ Gscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets
5 r; [5 z' X+ z% f- s+ z Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in- q- S i& a9 @- V; o/ s
September. Non-financial investment grade is the new safe haven., F$ |0 O1 `5 D4 c
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%! j* A; B- v7 T# f
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
: {5 P2 [1 \! ebillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
2 @3 B% s; `: V: n3 [) baccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade3 k* W! Q8 v8 \: |$ j$ t
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
5 H$ b1 |, C5 ^1 g" Npositive for the year-do-date, including high yield.9 L8 I( n+ ^. {
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble- Y( c* h. h+ G8 c. Q- f
finding financing.9 S3 M) z( n5 F
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they2 q0 J9 N0 j6 B
were subsequently repriced and placed. In the fall, there will be more deals.0 T! ^# w" Z4 C4 [$ z
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and `2 U L% l! x1 b$ O6 L
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
8 G* ^) n/ Z7 M1 s" |$ W# X' ogoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
; D v6 a7 h+ L* qbankruptcy, they already have debt financing in place.
2 i8 P1 |) _6 I% V8 K% K European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
, a7 w5 v' ]" L+ C2 Y. f( a2 itoday.
; L9 V, S# l& v: L4 E Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in; i6 m7 Y. ?$ B( g
emerging markets have no problem with funding. |
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