 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
: k; E( A! S* Q2 z" z- T The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
2 d" X7 s( v. O. Oas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
0 w" \6 N1 Y8 @0 |2 T" pimpose liquidation values.6 E8 e9 {! L+ N& X4 g F
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In% y! ^6 X: s) R4 U+ X
August, we said a credit shutdown was unlikely – we continue to hold that view.' o% b* \. t9 t
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
7 \; g, d& c. P) \# F. Oscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets./ f# h" [$ j, A4 i$ _. Q
0 g$ _0 C& @1 I) DA look at credit markets% K* R3 }" @& u' m
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
$ z8 p& u* U; P8 O/ b0 ^+ oSeptember. Non-financial investment grade is the new safe haven.' w$ z: `! _( a( z9 ]
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%. w; @3 |6 Z, J4 |+ Y
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $12 q& z6 z B* G) P( K; x7 X
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have. t2 [8 W( U( K! x8 N0 O& p
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
( Z, E5 J* I. y l+ D5 YCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are% n) J/ X6 @3 W
positive for the year-do-date, including high yield.; e2 p& V- Q- p1 T# |9 [
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
# p5 r2 x8 T- Y7 {- j" h! @- A$ A' \ kfinding financing.) F# T! Y# M' c8 }' O+ B; n' B/ u
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
( ]5 ~0 @; t) f# y* gwere subsequently repriced and placed. In the fall, there will be more deals.0 w6 }7 ]9 F: J' Z
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
2 \% T- h+ }2 `3 G ]- Z9 g- N( e8 Fis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were$ k' V& L/ e5 `7 o! a; s$ W
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for- e) ^1 J q& B0 {$ Q; ?5 O: E+ d- ?
bankruptcy, they already have debt financing in place.1 \* F& K; E% F1 L
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain6 [6 |& J6 |0 U* f W/ |
today.6 i2 \6 q8 P+ }# k6 ?
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in4 W1 y: _8 F Z7 A0 F
emerging markets have no problem with funding. |
|