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发表于 2011-9-17 13:16
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Current situation
F! ]; r' Z- r7 D# ?5 R The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long5 y0 M* e/ u. ?. K! ~4 A
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may) Z+ u9 }, O$ ?
impose liquidation values.
2 O, f, G4 }6 i7 y In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In. Q6 ]& a" ?6 s6 d8 O( J, G: y
August, we said a credit shutdown was unlikely – we continue to hold that view.
* l7 w( d. y+ ]6 L8 I. u1 v6 y$ s The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
% b! d) s+ ]9 I/ J6 V; k, W- xscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
n( V7 u4 f7 D8 `1 m" M; O* c/ r% |: W; i5 Z- b( G8 n
A look at credit markets
5 ] e; z7 Y# H) X2 ?/ i2 ~ Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in4 O1 [, J6 X, A+ j
September. Non-financial investment grade is the new safe haven.
4 b* X3 u. N$ B& K1 S High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%0 _, q' {$ j% y0 }! |8 o
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1 x; c% ^$ o" Z3 H% z- y5 ~
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have4 {9 ]* V0 _$ o r( V0 `3 [
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
+ n# ~$ n* ^* Y% H2 c& cCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are1 j' k |, m; `' y- R; j0 {6 m
positive for the year-do-date, including high yield.
9 X, N, ^5 q$ F4 S f) G: ] Mortgages – There is no funding for new construction, but existing quality properties are having no trouble6 G' Q( J0 |6 @( j1 q5 v
finding financing.0 V" Q- O6 O2 g! ^
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they- j! a4 s! g+ c7 t# E( B
were subsequently repriced and placed. In the fall, there will be more deals.0 t! k' ]0 w. b G( X, L
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and) ]& U# ~9 u, |6 d- M+ Y
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were: \% p, {9 [5 |$ O* e% ~+ W1 Y
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
; m+ Y5 V- k: O L( n; S- ]bankruptcy, they already have debt financing in place.1 P$ a- s! B0 p7 @( [
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
# y, F: X% n9 R6 w/ | `; V0 ]today.
( Z* a2 f9 B. }8 @% c Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
3 m4 w; ~8 _% R3 x5 Cemerging markets have no problem with funding. |
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