 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation. i5 _7 G3 ?: b
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
4 I6 s; ~5 Z. q) ]2 g0 E* `as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
3 }/ a( S3 K6 m6 }$ K1 y% G. Mimpose liquidation values.$ u7 P# f% C: d
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In' t9 }" [6 ~$ q" B
August, we said a credit shutdown was unlikely – we continue to hold that view.
$ b6 g* z6 ] q4 M The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
9 a/ Y" T' @) Q \* l! Kscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
0 l4 V9 e+ N& L- j7 n2 o! ]+ W' j4 n, t' X5 p
A look at credit markets
8 Z% _* k5 _; u! j! E Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in! A# o5 N; {5 H. ]% E) m/ I
September. Non-financial investment grade is the new safe haven.' a# w2 W8 k' }' U7 t' o
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%8 x. ]5 N0 ]/ Z5 I6 v
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
2 [# ^7 X6 P# @2 C; r8 q F; Jbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
& w; o: m) ]5 e' ^" M1 q+ L% \/ Paccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
' A6 m1 c8 i: Z$ T5 ECCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are: H+ N) ] V* n8 m' I
positive for the year-do-date, including high yield.( N; m- m8 s3 E6 M0 i3 w+ r
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble1 H; v! L! k* g0 A' l: ^
finding financing.
+ k& L( T# V2 N" [# O. m; ^6 S Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
2 p% V0 ]' w* I9 o+ n0 iwere subsequently repriced and placed. In the fall, there will be more deals.5 p" u4 R9 I; n- v4 y" d
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and( j1 `7 t! Z( E
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
" d) f. w+ ]" v+ S* `going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for+ f V' r) Y. k8 h7 o1 u' N" A
bankruptcy, they already have debt financing in place.9 J" w- C9 y& R: I" \/ \
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain1 }$ H) y5 y1 P( d" q
today.) g- [5 J+ p3 O# _1 J
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in* [6 D. A1 P) A9 F! T
emerging markets have no problem with funding. |
|