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发表于 2011-9-17 13:16
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Current situation
' d0 J% p+ C- u& ^' N |$ q' |! G4 l7 r The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long8 d( I$ A p4 e% H
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
( a x$ S$ w& B. t4 ximpose liquidation values.6 B' J0 n! \5 X o' O+ B) f
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
+ t( H" x7 b* e2 T3 BAugust, we said a credit shutdown was unlikely – we continue to hold that view.
- Q! ]: \1 Y5 z8 R The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension+ H/ K# a/ n5 } U# _5 F9 v
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets
. P' X2 K2 H+ Z O Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
, x; a! i5 B2 c: M1 }6 R$ g rSeptember. Non-financial investment grade is the new safe haven.
3 }6 h3 H9 _ ?( T High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%, g9 m1 D- _: Y- b" M k
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1$ A9 ~) S, }. l" H, |- `; d: i
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have; h" F F( A: s0 Q! y' a6 s _" v
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
, M5 E* O$ S& a1 p9 `CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are3 |2 I7 h( \. i, n" ?0 U4 y) O
positive for the year-do-date, including high yield.
: T+ {3 P1 ?) W5 P2 O Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
. t9 h7 l2 |' ^. F2 afinding financing.: v- k: Z6 F% ^6 S2 }$ j
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they; h" V9 \5 V2 B4 Z |6 _
were subsequently repriced and placed. In the fall, there will be more deals.
+ ~( G O3 m+ N Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and. o6 ?7 y! i/ w) O3 C4 K& I c! c
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were( z8 [, |& U& b# R
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for6 T: L3 y5 i$ F! E" ?/ h6 ]3 M8 [
bankruptcy, they already have debt financing in place." U" Y4 K0 A! F# e5 K% ^
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
7 v2 D, T1 m" E. utoday.
: m: g' t( ?4 L7 r Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
: b% B7 I Y8 g- v& O) qemerging markets have no problem with funding. |
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