 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
$ X s# D; M4 W The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
( a. ?# |" ~1 Zas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
# t0 s4 K# i3 K: i0 cimpose liquidation values.
* G9 U _2 I7 R" X# V In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
2 ^' m. E% y6 u8 b( G1 U) tAugust, we said a credit shutdown was unlikely – we continue to hold that view.4 a: b- u8 @* F' n) e) G
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
$ I5 ~7 ~: B" t/ D( I# ~5 Sscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
% X2 z' K* C& z
$ L, u1 D2 X+ b- [A look at credit markets b2 v+ x3 B. R; y2 p
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
, Y8 x2 H) N t/ ASeptember. Non-financial investment grade is the new safe haven." v5 A- s. a9 S% T
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%6 b; k# m$ \) ^. X! q0 N& R! H
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
; f! W" y5 R1 W( y* A" m, xbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
* @: l9 H8 ^0 ^7 K) E; K& O8 aaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade9 ?4 W( d I8 ?1 x' t# R9 U+ A5 t+ d
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are, t& {) u2 F- n7 M5 @
positive for the year-do-date, including high yield.2 }- \( @2 W9 `- ?" D
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
8 h) @' o3 j7 p# e2 L8 ]" g" kfinding financing.
4 z: J3 M- M- p" O' p Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they9 n, F; F D4 H( ^' ]2 d! R
were subsequently repriced and placed. In the fall, there will be more deals.4 \' K6 T2 A6 M4 |$ G( i( ]
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and' j$ s6 _0 K& t! R! b: G
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
; T* g8 q5 |) _3 o5 o3 qgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
/ o) @4 ?. L3 T+ r9 u/ T9 o) obankruptcy, they already have debt financing in place.
% I; F: U1 `; O7 ~4 y# d European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain+ _. K0 i" X& A
today.& G# \ I# y1 s8 M+ ?4 u
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
1 J# z; s' r9 O+ E Gemerging markets have no problem with funding. |
|