 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation8 k+ @- Z1 M* O. T9 |" b9 m( n
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long* @3 {3 _! |) h1 F6 V/ _
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
) U8 p( b. ^# fimpose liquidation values. p5 c0 o) S% _
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In8 f1 y4 D3 t' [- @$ M4 r
August, we said a credit shutdown was unlikely – we continue to hold that view.( a: s; q2 \8 }% Z0 y
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension3 Q7 ]" i1 [6 x
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
, ?# F* q+ p+ p2 }7 |
6 T( l1 G+ d- M8 e9 h% UA look at credit markets4 L5 E+ u$ e( s& ~! h) ^
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
& n. s( J! m# b8 SSeptember. Non-financial investment grade is the new safe haven.4 n# R: i3 E J0 g0 {/ ]: j0 Z( G
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%+ h% U% C; N9 P" X5 B: c4 S& s
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
% S2 _3 g, n6 U- ?0 dbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
* Y( s& y! \; F& o2 O+ ?2 A) z4 iaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade% i/ }( M$ E. V( n4 L8 W) i
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
4 L* H. r- Q' `2 zpositive for the year-do-date, including high yield.
% f* K. l/ u- a$ S1 N' a Mortgages – There is no funding for new construction, but existing quality properties are having no trouble& [& K# W( P& }1 x
finding financing.
8 K) W1 s6 T: ~4 p Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they! e7 l2 E+ R0 Z8 X W+ P6 w5 A
were subsequently repriced and placed. In the fall, there will be more deals.
* z# b6 U- V( A1 E% n# `+ w Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and3 I# e# F8 w& L# G5 z
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
2 A' U7 C( T0 C' X, Ggoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
8 U/ A3 U8 p/ u% kbankruptcy, they already have debt financing in place.4 Q6 `" B% Z* w+ y0 U( e
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain2 z' n" B3 n: V8 Q
today.
7 O8 O. V: V0 s; W' | u Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in3 v6 n; S$ d8 a8 q7 N
emerging markets have no problem with funding. |
|