 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
% X4 m' U' j/ P4 k. A2 q2 ? The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
4 b2 o3 q% R/ t1 d0 Xas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
& y1 d. p$ G) g {/ L: ?/ ^impose liquidation values.8 l+ q. @5 R5 D# L
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
: k6 p! w- d9 R' @& e" l9 [August, we said a credit shutdown was unlikely – we continue to hold that view.- b* i( \4 K! J6 z$ `5 `3 h) R
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
: A% T* r; T4 ?+ I# T0 O" O$ Cscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
5 ] | p, y% R5 ]" n( F( w& d
5 s8 t' _- U7 T% l2 WA look at credit markets9 H# M" \5 }6 T" w- G# b
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
4 _( U. E* g# o5 GSeptember. Non-financial investment grade is the new safe haven.7 a/ ?% _' j$ `, Z }; t2 X
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%3 U0 q; a) T, {2 V6 q
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1( w1 o# ]9 d8 {- W6 Q: W$ y0 a4 X+ ?" a
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have7 I z$ r! |* C9 S7 R0 g
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade: |. f2 @4 g( j* c4 h
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
$ p& g* t, R9 u9 D4 T6 p- w" o( v' E( dpositive for the year-do-date, including high yield.
6 {8 p9 ] D( I x Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
! t5 Q5 Y; e4 q1 Nfinding financing.( K" C1 p% Q% T9 E& B9 O
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
/ \3 ~% `# K7 d& b6 Q; Q, z; Awere subsequently repriced and placed. In the fall, there will be more deals.
/ }8 H3 \) J: v+ x Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
- K2 c( P( v8 m6 L4 zis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were1 K6 d" u; ?% C# |- r7 D0 _
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for, J4 z: R; K2 v
bankruptcy, they already have debt financing in place.1 [2 C+ m! r3 T" Y: T* ~" z! g. u' S
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
8 p2 e7 I8 a5 z# xtoday.
, a( J( \; P6 o2 r5 ]& e Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in7 }+ r* Y( s2 A8 J1 Q8 J E
emerging markets have no problem with funding. |
|