 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
7 U3 X) W! r W+ ?$ u The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
- ?8 F3 q8 Z& o, m/ X$ I6 |as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
; n0 z9 e; h5 y% uimpose liquidation values.
& H( n" [1 W) V5 B# m1 {; D* S In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In# E! ]- n' V5 ?0 v/ v! x
August, we said a credit shutdown was unlikely – we continue to hold that view.
& T [' L" G7 W' n/ C, E The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
' Q) k* w( o1 x' Z" b: p4 wscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.+ S/ x, Z6 C# J0 g l3 L8 c
3 \7 M, x9 `7 F* V: w8 O% E, c, I! hA look at credit markets
/ F# X. u$ l& i; Z Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
' S" L2 \3 U4 ` hSeptember. Non-financial investment grade is the new safe haven.
' D9 x2 w, ] J5 D High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
, x* I/ u& l5 N+ H% [, @then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1$ R9 n. ?3 N6 F# ]5 c
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
$ n$ K& U& s6 }* T4 ?- y& ?9 b3 ]* Q# _access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade0 O, a. W5 x. P1 n7 ~7 N/ Q
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
! j& u, [$ e0 l. ]$ Jpositive for the year-do-date, including high yield.
3 P- h. H& ~" H' I O$ ^3 g Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
2 J7 x v8 w5 r) K8 s1 Y& i8 x6 Tfinding financing.! [) D7 e+ n+ x9 L5 g+ M7 Q
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they# a- M# K: b) ^' Q4 \* K4 A N
were subsequently repriced and placed. In the fall, there will be more deals.
1 p7 T2 \7 Y M" K* h8 _! G Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
8 W: c2 k" V7 pis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
# g/ i3 I2 J& U* \6 q% M8 Lgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
4 K5 ^' ]2 U+ O% s4 ]bankruptcy, they already have debt financing in place.# z* w v; q3 y* w% v/ f3 b5 l
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain% h) {% A: e- f2 y( K* d2 v; w
today.
1 ?$ Z% ^4 f) | Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in% t' ?- n! g$ C+ {
emerging markets have no problem with funding. |
|