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发表于 2011-9-17 13:16
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Current situation" o; C' Q6 z* j9 O1 X ^
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long T1 t1 ?. N0 P2 ^) @ W
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may4 d* _" q) S6 h5 y& T$ O
impose liquidation values.0 ~! g9 v( A2 T* B
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
O& O, I/ Q1 N _; tAugust, we said a credit shutdown was unlikely – we continue to hold that view.7 K4 d2 z5 ]' g7 |
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
+ [! s* M1 b. |+ Zscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.: y" }% V( _. U& V5 h% ?( ^
& U" K9 r) \. m1 d% e$ Q3 c3 ^4 a& J
A look at credit markets
" ]. o; ]2 q& R: e `1 b" l Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in$ p# R2 X& s! O: ?; [
September. Non-financial investment grade is the new safe haven.
, p8 E K# d0 C( R0 p High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
3 Q/ r, v2 l& P4 t1 A$ d* n' sthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
( G6 f- C6 _9 F' z% p8 y, r. zbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have7 s: Y5 C, S- [, D% g
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade2 x; l* Y. {3 K
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
$ B9 R) V) a+ F: ^' q; G3 Kpositive for the year-do-date, including high yield.
) n! }0 G, O% N7 t% X; u& ~ Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
# s6 P4 s* @5 d. P' |7 ^finding financing.$ q2 v! k2 P$ Q0 v" t
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
9 I& F. z3 f0 A( b+ Y4 o% `( w# pwere subsequently repriced and placed. In the fall, there will be more deals.
a, P! W/ L4 R# B% Z' T Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
1 `! Z! q3 I, d5 U. D' S5 b9 m3 ois now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were ~2 C* u3 |; {6 |
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
1 \* t' C! [% U/ _) h6 S/ Tbankruptcy, they already have debt financing in place.: x7 K8 m+ P$ j- }
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain1 x* i8 K/ y, K, ]$ @6 [0 _
today.
% B7 H# x9 q) r: Z Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in& N/ ]' J- h, s+ T) \4 J
emerging markets have no problem with funding. |
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