 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation5 h4 _% z1 {( L% }7 J# e5 Y! W
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
& H3 j% Y0 J' w, @' D5 m# qas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may) ?2 ]+ | d! g. G0 m/ V" f
impose liquidation values.
8 X' I3 Y+ L3 ], n% B In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In6 X: G- `& a; L* U2 S" g
August, we said a credit shutdown was unlikely – we continue to hold that view.
3 Q# n: v3 q2 t8 L6 e' | The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
9 E4 d [! N! P. [9 `scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
; E/ t. j/ j, g/ Y- S: y8 Q/ X' ]# M g& m, r
A look at credit markets# N4 l! M' _) z/ v
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
: N" S5 Q% x4 _% _September. Non-financial investment grade is the new safe haven.
6 a+ E. ?+ J, I% z& ] High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%, Z8 Z5 `8 a! u A4 [
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1! H; [/ k1 l2 J; N" c
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
- w. `3 M, l9 E" i7 ?: e, Z$ v caccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
% }5 J k% q' A) B0 o" R( t& qCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
/ `' M4 O8 ~/ ]4 O) \& Xpositive for the year-do-date, including high yield.
" M$ E2 F& q( d5 H9 i Mortgages – There is no funding for new construction, but existing quality properties are having no trouble* R1 M, t/ A$ k! z: p4 w- b
finding financing.. |1 ]6 |7 J& l4 H
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they0 x+ ]- A) B" `/ j
were subsequently repriced and placed. In the fall, there will be more deals.1 m- X5 w0 b) R8 k
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
1 u9 F. ?2 ]$ @0 w+ Q2 z; X' |9 _is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were, f. [3 E$ y! r7 O. S; I- f
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
8 U7 c' \" x# U. v& O& }! gbankruptcy, they already have debt financing in place.
5 m. i3 L( V* d6 F% x% n9 { European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain4 P: s# k% B1 a5 Z
today.
( f) x: M7 u" g Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
, u3 o; L9 C2 Z- |' u5 \emerging markets have no problem with funding. |
|