 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation7 x7 y( v# i, p0 i7 B. _
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long8 f& U, w9 G- F! Y; @) @" P0 Z
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
" J3 D: j# b! ?. q" simpose liquidation values.5 P( Q# i4 b2 W' w/ z/ r6 w" K( v( J C' B
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In5 V1 `6 e. } l- _" P P- g/ X& t
August, we said a credit shutdown was unlikely – we continue to hold that view.9 `) v# E# |2 a. _
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
1 O+ [# C7 P2 E3 vscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.- k5 T4 c \# H# l, Z
. S# V7 Q1 v' V) S
A look at credit markets+ [+ P0 V) X7 c3 b0 l: ~
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
& ]" R! f+ Q. \4 W t" V- ISeptember. Non-financial investment grade is the new safe haven.
9 w9 G+ r# c/ a" D. P8 ?7 u7 ] High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
0 S9 H9 w! w4 |) e8 f$ tthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
1 d5 D" t2 t6 d b8 P: jbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have. f! l5 Y5 F4 r$ Z# p
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
8 |$ R4 S! |2 {/ _CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
( t% s# n& `& i5 ~positive for the year-do-date, including high yield.
1 u* N7 `+ K% _3 ` Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
Y$ A5 ]% _9 z, r$ g' Wfinding financing.
, b9 p, n: n- n* o' `1 Q Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
% q7 n: ~, T. \$ y# Z4 S/ `% U7 T& |were subsequently repriced and placed. In the fall, there will be more deals.+ }' r9 ~5 _9 v, ~- l, G
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
' K% F# S, c5 u& u! y. Ois now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were; t, R3 T8 d* \% R; ~1 S
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for1 |. x% H1 | `5 w: I
bankruptcy, they already have debt financing in place.
E( u3 a& r) a) R- t7 P European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
0 v" [' @ c8 ^4 W7 qtoday.1 n% o" i3 }' m3 r# L5 R p
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in p1 q4 b d5 A4 f* K" @( t
emerging markets have no problem with funding. |
|