 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation: F: V3 t; C; a2 l, H. F& B" |
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long4 O) }% F: k4 R& A. \. F$ C1 s
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may7 { G9 ~3 L4 J9 V* D
impose liquidation values.
8 { c6 {6 V/ g3 C6 w9 L In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
2 q% f: @$ S' DAugust, we said a credit shutdown was unlikely – we continue to hold that view.$ ?+ B( m7 b. c- i2 a0 t; m
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
6 ?8 t2 k0 q0 |; b0 V, Oscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
2 c8 q8 [1 K& i: J$ v$ G c/ ]' X1 N) c, E+ \+ f( V) l
A look at credit markets
- @1 U4 Y7 f! L; J( G2 C! g" _2 I Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
8 N0 d& |" `4 \" ?3 L, tSeptember. Non-financial investment grade is the new safe haven.; x4 Y, Y$ l2 B. {) [$ n
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
" e4 g$ `( q" r( p& _: @. k, ]then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $17 n4 A0 f! N. b6 ~, x4 a
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have$ s0 e S" q5 S
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
8 Y8 B/ G5 r" r4 i2 [CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are1 q1 d4 k4 s1 F" T, J, {
positive for the year-do-date, including high yield.
, @6 A J: k" C9 w9 g* q Mortgages – There is no funding for new construction, but existing quality properties are having no trouble3 m/ m0 q( S; Y" b' ~" Q. W, V
finding financing.
" h6 _6 S) P/ K* {* J Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they* N9 b/ C0 R0 i. {% a% R
were subsequently repriced and placed. In the fall, there will be more deals.& `5 o, {9 c' F0 p% b9 g
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
5 t0 y- u9 K+ H; D6 O3 Z9 i9 _is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
" q5 a: S/ {4 s* Y$ E- [/ H9 dgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for8 y7 R7 w7 J* n0 K8 w8 w6 ^
bankruptcy, they already have debt financing in place.
" m8 L3 E% ~1 V European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain+ x( L/ a" I% I0 K' P. H2 y
today.1 F( b- |! ~7 ~9 H( D
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
0 z i: i. m% s* a5 h$ {emerging markets have no problem with funding. |
|