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发表于 2011-9-17 13:16
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Current situation
7 e, ]! b$ s& S' e) f The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
7 M) V8 e7 F" _1 t+ T" ?' Q7 Fas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may, B5 [0 O/ O4 J! }, k! a" \
impose liquidation values.; W( j4 ^0 U: W
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
3 A; b: m; Z! \6 q @August, we said a credit shutdown was unlikely – we continue to hold that view.
: U( `. I" u6 g# e The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension0 W/ t. T+ x1 [$ h$ g
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets1 E, i$ V5 V. Q8 t- ^% ~4 n7 ~
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
" P- J, F3 u& G- @& iSeptember. Non-financial investment grade is the new safe haven.
6 D, Y, B2 b) M- ^ High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
& j( }5 e* W8 ?7 ythen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
4 U7 n. z3 O& J3 H/ Fbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have( c/ r$ ]9 x0 k% T
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade# L. N# R% @5 U7 `* I) J
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are2 g) X8 S3 k# w; y
positive for the year-do-date, including high yield.+ \+ [. ^; ~% L8 a, V$ m# w
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
) e) T( G$ B& @: g5 E8 i2 ~6 `$ Ifinding financing.
, @. `* Z, r! @ Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
Z( D9 y) e, h) }were subsequently repriced and placed. In the fall, there will be more deals.
. }$ R3 t7 d3 M% ^1 | a Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and+ J) Z. q4 y; Y- e- T
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were$ w. i( W2 [( Q0 _5 i
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for% V- n/ M* f: g/ c! F/ l6 s
bankruptcy, they already have debt financing in place.; q7 X# A9 ?4 I1 `0 {& F4 w
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
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 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in) i! l- C4 A0 A+ U" U
emerging markets have no problem with funding. |
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