 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation" H3 Y( I* h- M F
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
/ b7 u, r* u6 O! B7 L; [7 fas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may- c" ]) f# A9 \+ _/ @
impose liquidation values.; m$ A) y( w6 G/ S0 o; G" G* c8 W
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
# [; y7 F n$ u2 SAugust, we said a credit shutdown was unlikely – we continue to hold that view.
5 Q2 J# e- x& U5 ` `6 U The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
% r& w/ Y1 y! Cscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
/ k4 A- \0 x- g+ @$ ^4 P9 O
0 z, z9 L- ^5 d* l8 I; ^A look at credit markets
4 X0 p$ W6 p$ ^/ N5 p Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
# }8 D1 `6 b) P* ISeptember. Non-financial investment grade is the new safe haven.
4 j$ P2 m3 j3 U/ M M& z8 B High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
" E5 d0 ?4 z/ Y2 [3 ithen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
0 Z, w4 P7 h7 xbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
" ?: z. s& {" X0 B/ h) c) ^access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
# ^$ C( w1 a/ u; x' \! v% z3 FCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are! Q9 l2 ]) M4 i! z8 u& S9 m
positive for the year-do-date, including high yield.: i! t U0 w9 f! T
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble9 ^" W7 o# [1 J: F$ f9 {# j
finding financing.! y, u1 _- G O0 A6 C) T
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
+ C, {7 m) \! u: Uwere subsequently repriced and placed. In the fall, there will be more deals.
8 [8 q, u+ w. \8 Z" @6 L$ [5 Q) j Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
% y6 k/ }7 ]- l# H% M& ^is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
/ D' H7 B# D% Y* zgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
, {6 ]/ J. L- J1 O" ? Ebankruptcy, they already have debt financing in place.
6 v |/ o- E5 s$ L9 S6 m. }& ~ European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain& N, I/ u; A3 y4 ^/ @' ^2 O
today.; ?0 j$ q# G* g' E/ l" f$ q0 y
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in; P1 k0 Z( }' G8 J+ y, T1 u' F
emerging markets have no problem with funding. |
|