 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
?5 l6 E. P* y' {- U5 | The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
( D( L4 h: ?6 b7 E3 d& [) qas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may% {: }" D- g" `
impose liquidation values.9 g r, H# @3 s1 }* \5 W( e
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
) o6 a$ n7 @- O4 oAugust, we said a credit shutdown was unlikely – we continue to hold that view.
2 q- f6 t( a5 }2 j$ X5 ~& P! O The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension! K6 A8 ], x& }5 C; _; S* a
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
" u" v8 r0 R% t4 {8 n, o( Y. `6 j: R* D$ m0 p3 K7 o
A look at credit markets9 [& Y' {0 O! O
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in2 }/ D5 v7 l6 B# r4 \* M. A7 Y$ q
September. Non-financial investment grade is the new safe haven. k! {8 h ?' P+ Y9 M# H6 z0 ~1 `
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%7 _+ I4 B ^2 ]/ i) V; M# @/ s
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1 q1 t! j) D8 n7 |
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
6 p5 R$ s7 L: F7 D+ i# u5 f- haccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade, _6 \. i" P8 K; m) D
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
& h4 j+ @0 U; V' H8 Mpositive for the year-do-date, including high yield.
3 s+ h) ]0 q* X: V Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
$ Q5 [" h# f8 Vfinding financing. \( q0 \2 V$ n& O. m4 ]: F
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they7 w6 {+ p* d, g# H9 \) w
were subsequently repriced and placed. In the fall, there will be more deals.
% I0 u" }) B: h( r! j6 c Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
$ k7 C6 s7 I, k9 |is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
' }( J/ `5 X+ _# P- cgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
' M4 @$ F( F" y. J6 d M( w" Q! jbankruptcy, they already have debt financing in place.
& Y, g0 K- E7 w1 _ European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
0 Z I, K4 A) J- ~$ V( X% ntoday.
' @9 m. s& h% L- j) ]* R Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in/ _$ Y* F, m& T4 K8 p7 d0 q* ]
emerging markets have no problem with funding. |
|