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发表于 2011-9-17 13:16
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Current situation! ^+ S7 U: P7 |% v3 V& l4 M4 v S0 e4 F
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
6 P6 o' K4 Z7 e' Qas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may! o, C) ~' {- b5 P3 Z+ T: @
impose liquidation values.
. A* a+ k$ y4 h# _ In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
- ?& \2 u- A5 I0 ]August, we said a credit shutdown was unlikely – we continue to hold that view.& v- V2 T+ U. q5 a7 p
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
6 ^1 Z! S! @6 h7 n7 bscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.2 _8 X7 F2 V' A* j7 _" v
2 `* [9 F% t1 v, p: @: ?8 L7 f$ KA look at credit markets
7 V8 Y; N' e, p3 ?4 N Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in! J0 d$ f" U; i+ f' I& k
September. Non-financial investment grade is the new safe haven.
9 ~. H3 l7 r6 @! T# Y, A High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
* N ~5 |5 o! Ithen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1) D- K: ]! K2 K8 M: _# A1 ^+ t9 h
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have; Q ^1 ?( S5 U# u5 l
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade; W; L- `6 | G0 T, H
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are! ^0 S8 h3 f3 P6 P
positive for the year-do-date, including high yield.; @0 H: `! j; @- U
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble! i/ T9 A) ] e; R) [
finding financing.0 `' [7 G- v; k8 I3 v
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
4 T: w( S! n" x1 J, L0 Awere subsequently repriced and placed. In the fall, there will be more deals.
. v4 j, S* ~- |5 u8 C9 b: B$ L& j Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and! _8 \" J$ \* \ f( x" S" G { z4 Y
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
9 W9 M- v' s; u* f2 S3 O* ggoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for) ]( [, C" p; H* X+ z& a8 N
bankruptcy, they already have debt financing in place.
4 M. A/ s' k+ }) d European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
# i$ }7 L+ s6 r* k1 B8 Ttoday.+ E' r, q- }4 }' H
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in* ?5 e/ R) i/ a7 V
emerging markets have no problem with funding. |
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