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发表于 2011-9-17 13:16
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Current situation
Y) _/ ~" X( a1 W$ _) ~3 \$ E The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long [: I" v: f- r, _( U3 d& Y4 a
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may, Z- N4 A8 Q# ?; {) \% q
impose liquidation values.
7 p! O6 z3 m4 l- e2 Q In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In# B1 ^9 P# v2 n S- z
August, we said a credit shutdown was unlikely – we continue to hold that view.
+ J* c3 Y% M- J" J: O; K The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension0 l5 U# Z% c ~# N! e3 s6 ?7 z
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.6 ^' g. \* @7 D8 I+ J
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A look at credit markets2 x0 i) G7 J: r0 ]$ q. O8 d
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in4 @1 d- ?; a/ W5 |- J' @
September. Non-financial investment grade is the new safe haven.0 v+ ^; i8 _0 R2 t2 e2 A
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%; L* i$ [" |, z5 Y1 f { f
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
- r5 E: q5 R; x% q- r- R) {billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have2 W E% s- k9 N
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
+ v; \- K5 ?: ?CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are. E3 ?% Z. e& w9 r+ e0 S7 r8 |
positive for the year-do-date, including high yield.; @2 `/ a( Z9 m+ V2 @ t4 o
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
# k6 d2 K- J9 [( @# ]finding financing.
- ~: F# a5 X4 @) H4 j Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
/ {: ?1 e! g) q! A% c" R2 w3 I) Ywere subsequently repriced and placed. In the fall, there will be more deals.
2 L% U6 u+ E) ^; i Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and$ O1 _5 n# Y, }' X8 E2 a( d
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were/ t8 U( u0 [. Q, N( v+ c ^
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for& n6 M/ d N/ L' q) j6 D, v
bankruptcy, they already have debt financing in place. Y6 \' z; C- ~) w& a' S
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain( L, ?$ j! @8 m
today.) N' J; U( v& u+ q# i9 T
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
% I/ Q3 b- D* L. Remerging markets have no problem with funding. |
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