 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
+ j# W5 T$ `" P) K$ o, S$ L The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
# @2 ^: Q- e! W; X+ V; k7 H4 Z' Kas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may1 [% G9 R6 t& J
impose liquidation values.; Y$ r" a8 Q% I" }
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In' `# `- u1 E2 h8 q
August, we said a credit shutdown was unlikely – we continue to hold that view.$ `5 ~/ H9 N O& a
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
- u' H# E8 i% [$ ^% @: A/ O4 C+ {scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.- V. A3 ^8 I" `8 P9 Z+ o) @
- f! T9 k+ K5 h; q" e, ?1 a
A look at credit markets6 e b- O8 a. `& r) ~5 \' o
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
: T* Q9 m% a# X) v: kSeptember. Non-financial investment grade is the new safe haven.2 |3 K) m6 l p" j, M. N% j
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%! v# P* x& R2 f. G/ X' n- [7 i! f
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
& G ^2 {3 z2 N. `/ J" n- I( s4 Cbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have. q/ @, N# A; A7 {
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
" X% G* r4 N9 b, OCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
, W6 @' T) g$ x; p" w! d: W: R1 |5 D" jpositive for the year-do-date, including high yield.3 J8 s. c2 |3 Z" `& z# Z
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
$ ~$ X* Z9 l; S J5 r9 w; S% `( M; xfinding financing.! G/ \% ]' d3 Y' d# ~4 g
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
: n- z. K2 m b4 m# |were subsequently repriced and placed. In the fall, there will be more deals.
D/ Z: u1 `% E Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
! E3 p8 k/ c8 {2 D2 v+ ris now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were* i; n( J. I* A! L+ }0 Q
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
" w! s- j O& `0 h" |# V2 vbankruptcy, they already have debt financing in place.0 _ `- c& Y+ H" u/ o% y6 [: X
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
; V8 v2 k" |& i" C' ^today.# w7 A$ o9 O/ N/ H3 S; N( i
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in4 O! E8 ]; W4 Q5 c
emerging markets have no problem with funding. |
|