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发表于 2011-9-17 13:16
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Current situation h+ W5 B8 T% ~% L; S5 U* j4 t6 s
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long. Z5 T* Z& j I" l3 c5 t2 P
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
' c' Y4 s/ l- K' _* mimpose liquidation values.1 i* ~6 Q( O. I+ |
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
: p! B y% `% ?August, we said a credit shutdown was unlikely – we continue to hold that view.7 @8 n. W) j7 ]; B5 Q' l# S4 o
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
( |$ o) C$ F9 i2 M) kscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets
6 F2 u! z6 t& r% G) f) f Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
( g5 |: Y2 t: b, G$ v2 ESeptember. Non-financial investment grade is the new safe haven.
8 w& [& H* y* u& E High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%9 S" h7 s4 w) E* [% d+ o
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
6 Y' v' Z$ ?( T: S0 |# a/ ]9 Jbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have% p' W- c! _9 z8 e& F
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
' |% N8 d1 P/ l+ j" p! X8 NCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
3 `6 J2 @( ]6 n0 r. z( ~positive for the year-do-date, including high yield.
" y' ^. l' I$ z8 C) Y, X% _ Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
, k( n; C6 O/ C+ T' Yfinding financing.& {! q/ |! b* g' @. |
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they$ a! z( e5 X1 S( _; J8 x3 t, n
were subsequently repriced and placed. In the fall, there will be more deals.+ J0 U8 R2 h" D( S7 J# p
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
! @* t- F+ T1 _/ o9 y5 Cis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were; G! |$ X$ m2 \
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for/ ? p; l$ v! t5 E: ^1 k% e9 l$ H/ b
bankruptcy, they already have debt financing in place.! p9 n0 l% {1 E& j
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain6 ~* W6 H @& n$ z3 P' @' r
today.3 J1 { Z$ K7 M9 v6 j7 g
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in4 m' G; L+ b# I( v n, T3 V
emerging markets have no problem with funding. |
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