 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
6 |4 i: d, i5 ~+ v" F6 [% r The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
$ q& W3 s9 H7 v7 p8 |! Q$ J- bas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
6 e/ q0 ], h: N: |9 Y1 O2 aimpose liquidation values.
( l6 x1 I) L. S4 A In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
r4 _/ F; ?2 P0 _9 B1 ?August, we said a credit shutdown was unlikely – we continue to hold that view.3 X( I% N- a0 P* a
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
( m4 k9 o7 l+ d+ Dscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.( o Z3 ], ^1 }' `; b* I* Z
' W |% k! \- p6 i" d; C" L! h! Y* V
A look at credit markets
$ k7 a* @9 n% j! Y8 j* _; I: @# } Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
: s6 C. R5 Z1 N6 R* Y- H# z" BSeptember. Non-financial investment grade is the new safe haven.3 |5 p4 l. t6 N5 }# P; g5 n, Z6 e
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
' A) ~; `7 g4 F# Cthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
; d: A0 Y# K& t, [billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have7 o/ R) } @. H$ |3 r/ E7 P8 F
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade3 L8 o0 x$ i7 A7 |( g
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are; h' Q* ]( ^& c7 L: b; ]! j
positive for the year-do-date, including high yield.
2 g% Z$ @5 A y2 p! _. p Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
8 I' y+ H* A' A# \ Rfinding financing.5 x; S6 z4 n! D) [2 d5 c; P
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
v, y% _6 m- V- ?were subsequently repriced and placed. In the fall, there will be more deals.
$ d: l1 O7 }4 f! X Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and2 Z# C9 u, z/ Y' F
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were5 F! t/ v' B% E/ Y
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for2 o# `) c" W3 a5 Q- D/ h: ?
bankruptcy, they already have debt financing in place.
/ Q/ T8 e* s. ] European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
6 X5 [" X" f1 W3 Wtoday.) N# F" V" J% Z1 J
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in+ v1 p7 [/ c4 Z* ]" o6 y
emerging markets have no problem with funding. |
|