 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation/ A- V! @5 G v W. e
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
% Z& x. v9 U! O2 q: n; Eas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may) I: o: I( }% X. N2 @4 U
impose liquidation values.( N: Z- T4 v2 v/ j9 b* [6 b7 Y$ H
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In, { B3 m- u7 M# L7 \# z
August, we said a credit shutdown was unlikely – we continue to hold that view.6 E5 t0 D& L; P, B/ \
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
1 T, b/ _7 R" P" c1 d. ~& Lscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
" U+ K" C) X# M5 ]+ d2 X1 m; W7 H5 {4 _
, ^6 m1 v6 ?0 r4 N5 Q$ G9 MA look at credit markets
/ P/ ]) j) `; f, _ Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
: v. n2 _( z! |# l0 MSeptember. Non-financial investment grade is the new safe haven.: d3 z; ]; ?: n- d* } k! H8 [ W
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
3 i8 [7 K! E. x. ?2 Q" uthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1% E1 j6 f9 A0 B9 s
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
' x9 \7 Y& o9 ?access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade- g; H5 Z/ U5 O8 P5 y; i+ |
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
2 y" d1 F! s' x7 Z% m7 A) `positive for the year-do-date, including high yield.
$ ^/ t4 U% n5 H, [. X. N( k Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
" O( o: v% N/ pfinding financing.
# U* ?4 n- K0 y8 G Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they* O% [& v/ r4 C! N9 s! Y! k! u; c
were subsequently repriced and placed. In the fall, there will be more deals.
* i; p' v' Y4 R$ g Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and& F0 G2 H$ {) `$ i
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were7 {7 @$ T+ @4 s; ?3 U+ u3 q
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for. @4 E# U, [: W7 w2 k4 J
bankruptcy, they already have debt financing in place.) h i5 N- G* D( ?$ b* J
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain" T/ J x8 @% P6 r
today.1 i; u* G( G5 `3 c. n' E* b3 W
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in; Y: W7 I' `# B+ q' H: {
emerging markets have no problem with funding. |
|