 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation0 C, I0 Z! ?# G# v; B3 g' N
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
& b$ {# y9 J) ^ ]% X$ T3 Has funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may7 X& }+ \/ C" Q1 j6 W
impose liquidation values.% v. A6 n/ e+ p( u* H- Q
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
* S/ N" q" l- D5 [2 a: e! T$ wAugust, we said a credit shutdown was unlikely – we continue to hold that view.
$ _" H m" u) o! C( h& o! U The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension" t0 H' W' m, N5 h4 V
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
/ V- u3 `" J. `4 ~) _* U
; y \/ o! B' B5 [A look at credit markets; S- X' U% f4 D' O
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in1 C/ ]* z+ u: C: [! s+ W6 K; L
September. Non-financial investment grade is the new safe haven.
$ q6 [: x' {! z# v High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%7 Q# X, V! ~: R7 B" c1 a; @( i
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
0 ]6 P$ S( m: r0 h# }/ pbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
# t: v7 E8 P! |! p2 M ^1 H G" Y$ {access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
/ _0 [9 X: J8 J6 V4 MCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
, o7 X% \, p8 P! t0 ~positive for the year-do-date, including high yield.
1 N: x- {) S" l) Q( y3 H1 r# c0 M Mortgages – There is no funding for new construction, but existing quality properties are having no trouble; T2 H. }. g% l% x
finding financing.0 {9 W* Z* q" z' H) Y4 [
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
3 o4 x5 K0 R, i$ R; ?- {1 Lwere subsequently repriced and placed. In the fall, there will be more deals.
# v I' U0 F" k Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and, L/ U7 f: ?6 e4 Y
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were" P7 U' W* C: w% h O% A
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
, f8 \0 z1 O: \+ I* Wbankruptcy, they already have debt financing in place.
% e% l% @5 t& B European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain9 C3 i) |1 c7 }6 A
today.7 m, Z; g) n5 c `5 G9 ~
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
2 T, B' M% H" R* ]emerging markets have no problem with funding. |
|