 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
! w7 d, c8 @5 l+ R( ?) a The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long$ n) s: n0 V1 J% k/ k& U% W
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may; w0 y9 ^/ v: P( o+ G. C) N; y
impose liquidation values.- ^( s- |4 e7 c& w; g, Q
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In" b' x9 x$ {5 }; E
August, we said a credit shutdown was unlikely – we continue to hold that view.
, K. z. U. S8 p6 o- o/ f The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
* C- \3 P0 b- C. w; Oscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.: F2 d$ C- n3 W* Y, w0 B
3 l9 [! `5 y! p
A look at credit markets
@2 K" Z. P0 Z/ c( o. `) ^ Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
6 e0 s8 K! i& A4 Q+ w7 CSeptember. Non-financial investment grade is the new safe haven.
, i" b# c: M0 i) L6 C/ w High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%* A9 e6 x# ^5 ]5 Z
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
# l2 P, i" @7 V. \# r1 O' Dbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have3 Y7 S) r# s& _5 M* W
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
* t3 p2 p( v2 G# KCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
G) m5 p1 \# ^0 k- k* d2 Ipositive for the year-do-date, including high yield.% u7 N7 p' o" }% ?" a2 @ o
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble3 S5 y- R& p3 d1 y3 q
finding financing.
9 K4 v9 U( J+ K3 r# z Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they5 c* [. K5 J+ ]& ^8 f J1 C
were subsequently repriced and placed. In the fall, there will be more deals.
9 b& `/ W3 C0 I6 X; s Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and. n& L# w' q) y) e
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were" a4 S( X! |1 x
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
& d0 m/ N' ^8 f; ybankruptcy, they already have debt financing in place.
2 F! e: {1 ^( R! H+ }/ l European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain$ X# j- Y. z* o; e8 y& f
today.
9 J0 v4 H/ E. @" K Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
& O7 ?+ Y7 F0 o3 J/ |emerging markets have no problem with funding. |
|