 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
0 w; ?4 ~3 q4 \( {. M8 @/ | Q9 Y The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long( Z h$ V6 `$ U i- u$ L5 `* i
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
/ D9 d; g2 O! P6 H ]impose liquidation values.
7 e: M) D( m" n# w8 w In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In7 p' e, m* g$ [
August, we said a credit shutdown was unlikely – we continue to hold that view.
, _$ e' P8 d+ B- S0 S0 F The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
+ e+ N' | F1 R w* e' J: Ascrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
1 r/ `8 D, P4 ~1 E' _8 N( ?
# s; Q- h0 ]3 p9 kA look at credit markets* E: {" [0 T# p4 W7 k
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
) Q7 T. |. o4 m( S4 hSeptember. Non-financial investment grade is the new safe haven.% K' F- S& u6 ~
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%" _4 v/ C( J7 {0 [$ w! @2 G
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1: l& g3 e5 z* o$ G1 B2 J. O/ K
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
; v1 N6 E* p4 X/ Kaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
; c9 ~# Z( w7 D5 |. R' NCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are) q$ q! o+ U, L# {+ b/ i& d
positive for the year-do-date, including high yield.0 R) [; _/ [2 L8 E. Y1 ?1 b
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble2 r. \0 c9 p- `/ P9 G1 V5 d% f2 d3 e
finding financing.* [3 F% L5 e& ]; |# g
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they+ s. S, N) \- b: q
were subsequently repriced and placed. In the fall, there will be more deals.
: W$ d* i& z8 I, g9 K7 L( x2 e9 z Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and# C K8 L9 j. {, L9 U, Q- B4 m# U
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were% ], `$ z% x9 V4 K+ `; \
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
' b% e9 p) B7 Z: J/ rbankruptcy, they already have debt financing in place.) m% W+ b6 T, Z: W$ c! m
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain7 F0 t& A3 j% ]& r: B ~
today.6 a6 V0 y" w: r) _
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
* l. @+ B" @% b& a$ _) M1 ?emerging markets have no problem with funding. |
|