 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation T2 L) T2 K0 [0 h
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long* g( m5 Q5 V$ X# {; e# V
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may! N+ n6 O4 B. k" R2 v$ W6 {
impose liquidation values.
4 a$ o# V( r$ \2 a& ?" o4 S In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In2 j! i; A% i5 r7 D
August, we said a credit shutdown was unlikely – we continue to hold that view.9 S+ h, Q! J7 G% F: Y8 T8 o( i6 V
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension3 b( ]4 Y" E, D0 g
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.4 I0 D$ x* k8 \3 ^% A; M
; r0 n5 C8 d7 p9 G8 |9 O- C$ rA look at credit markets6 K' z+ m) } t" Z$ r
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in0 {8 j* B/ O8 {
September. Non-financial investment grade is the new safe haven." T+ H$ m$ a+ }7 ?
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
2 m$ J! a- l( `4 m" e! Nthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
# i3 `0 o: \ ^) E1 A4 Abillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
2 o, j: R/ G! U; P! D. oaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade9 Q4 ]' ^$ c# O7 B2 p
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are \7 }# D8 ~' F* B
positive for the year-do-date, including high yield.
- ?1 M+ @( L' c K' M Mortgages – There is no funding for new construction, but existing quality properties are having no trouble+ R8 D2 v# B3 z/ b2 W& z
finding financing.8 l+ i6 ~' ?8 S2 k9 Y; q: k& E
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
; S* c1 j5 }5 U5 Vwere subsequently repriced and placed. In the fall, there will be more deals.
* n! @5 c6 S6 A4 Q1 P) Y$ s Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
3 y$ e% m1 F6 R% z6 n( ]1 bis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
+ n/ d+ ?6 F. [2 Qgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
4 v8 d" Z* _1 G; {bankruptcy, they already have debt financing in place.
2 d2 I! K( s! S% U& g/ f) S- O European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain! c* _% h, w+ u( z
today.* s5 }% ~4 C/ h \
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in4 C4 r. |1 r2 @/ ]! {( p1 V
emerging markets have no problem with funding. |
|