 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation2 _7 m4 u' I4 R
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long) H0 x5 i1 `2 y' U7 t
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
5 ]! b1 W0 e' c6 _5 D1 D* M4 E9 i" kimpose liquidation values.& U- n( Q8 P N( H. L6 F
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In: L( A; _) a7 I, b8 ?; s
August, we said a credit shutdown was unlikely – we continue to hold that view.
( S, R8 ^* R) s+ N# @ The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
/ U* h7 k% L3 H3 {0 C: M2 K" _scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.& S6 X+ h+ G. D2 ]
0 f* i* X8 {7 U
A look at credit markets3 q t1 q7 ~, P' ^! y% M7 f6 N
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
) a( P7 l3 Z' c4 m9 T& WSeptember. Non-financial investment grade is the new safe haven.3 Q* H& M+ B% t8 e$ z$ ^8 W
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%) ]4 _ G( `) ?, b5 F
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
% ^7 [: ]5 d3 X1 x/ q4 Ybillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have' V& t: ?, E+ ? i" [
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade5 L9 _3 E# `2 n/ k8 L, w
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are' ^/ T* Z: X; X$ @; @9 [
positive for the year-do-date, including high yield., t* |' K1 Y2 R e
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble2 F. h* y$ I# R1 i; R5 Y
finding financing.
+ s) L0 _# F( [8 D! u! r Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they% }; J2 K$ a. ` D' j% [
were subsequently repriced and placed. In the fall, there will be more deals.
4 s( }0 l3 z1 [8 x* p5 p Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and$ h: \; `0 e+ a( u6 m$ }' e" v
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
' v) A* }8 Y l+ B+ H! Dgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for+ b5 ?. {2 D3 Z( \3 \
bankruptcy, they already have debt financing in place.( c* m" n# \6 E! L* w# @5 u
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain; `) u. a. v# a6 V' y# r
today. K. ~- c5 C4 s# ^
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in b+ p0 _& c3 o3 D, ?' }" C
emerging markets have no problem with funding. |
|