 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation5 w. }6 W' b8 h1 g8 N- A2 P7 t6 F
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long1 g7 e! c: Y' l0 ]
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may% z3 O9 d, N2 D+ y; ?- N6 {, U
impose liquidation values.
- F: B& _9 T5 F* i) P4 ]0 `* X In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
, Q1 W: H# \7 E' A1 @August, we said a credit shutdown was unlikely – we continue to hold that view.
; B% j+ H9 v& J8 I" J The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
3 r5 B9 V1 F& ^4 t; a8 Qscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
: F0 @7 R6 n8 y q' `6 A; l$ P
& [7 e- @! F8 IA look at credit markets
6 R O# e. h) \- a, r Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
) R8 Q5 @* [& w( W7 V& x( X3 |September. Non-financial investment grade is the new safe haven.6 J0 r: m% B% S
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%* @! a) ^ p2 b! @, g
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
& I2 {6 H* m+ d" u$ cbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
) K/ v, R7 n' `: t( Zaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade$ s8 \0 ^9 L K
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are1 u' P( x& h4 I5 E6 T
positive for the year-do-date, including high yield.
6 L! M' o/ n7 `4 M9 b' n, L Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
; V4 e/ p; S V2 L7 A b5 E- W9 [& Ofinding financing.6 |, j3 ]9 N# W" F3 V$ x$ v: ~9 f
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
8 o$ Y) C, R; [8 Uwere subsequently repriced and placed. In the fall, there will be more deals.
3 K2 U0 S4 r9 W Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and* `; L& U% t, U% S' H+ |
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were! ?$ h) c6 r, R/ b! \( e' V
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for, [5 }" Z% E% Q$ `2 J! M' Y
bankruptcy, they already have debt financing in place.
% b8 Z4 \/ K" s+ d/ o+ L- C European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
! N0 l/ ]7 D; _+ @9 I! Otoday.
P. h$ H+ d8 d ?- M% y Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in0 X+ n4 s( F7 N9 P
emerging markets have no problem with funding. |
|