 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; h# Y) G& V. G& q8 e The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
- v' ?3 N+ w o6 l r+ G/ Has funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
! {) S# j! O* n) [/ ]; f0 N3 Z( nimpose liquidation values.9 T8 F: f9 e5 ^% ?5 y: i/ G! R
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In# U+ W" l c& X4 ~& L
August, we said a credit shutdown was unlikely – we continue to hold that view.
|; M9 N! T. T5 U* f: H0 O+ D The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension/ K+ Q' F0 U9 K
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
7 B* M. G. v2 F7 H& p* C, |2 ~. P1 T# x1 U- Q; F
A look at credit markets( n# w. p2 {" K I! z) r
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in+ R5 u" i% Q! j% \' L6 f$ O
September. Non-financial investment grade is the new safe haven.
9 r3 u$ E8 |% e, c" [+ q, F! p High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7% Q8 h. F( Y# {4 I( U) g
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
- G* A( p; j0 a$ |. Y" s5 p8 ^billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have* K x5 G& g: @0 u+ d, [
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
6 W( c! _1 o, |# lCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are6 ?4 _/ c/ u8 N+ [
positive for the year-do-date, including high yield.
) j* J5 X6 V' |% S" F9 o Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
0 n3 ^$ \9 o5 [$ n: Efinding financing.. k( P" ]8 w3 z' r0 \6 F
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
3 A" q. {! J* c3 P! L e$ J6 [were subsequently repriced and placed. In the fall, there will be more deals.: R0 I+ ^2 o& V3 c0 m; u
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and6 h, ?. E3 ~. b! q
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
g, G7 [ B5 u. j5 C3 r# Ggoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for) _0 X' r0 {" v
bankruptcy, they already have debt financing in place.
5 m( \9 c7 n6 }: J1 B" X: A. \ European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
% q1 A) D0 x3 m3 O9 R- g* M. Utoday.
/ w# G9 G& O0 |' [ Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in% O. u% U: ^4 o9 t- u+ Y4 f
emerging markets have no problem with funding. |
|