 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation4 @: |9 \" q5 Z
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
- ]* ?6 m) P( E8 G( has funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
( ?8 ^( k( L) @2 a* gimpose liquidation values.3 P3 x3 X# m* T# F; Q
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In$ f7 ~" I& M% z0 F% p. E
August, we said a credit shutdown was unlikely – we continue to hold that view., R) S& P$ X, b" W/ h ~' t
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
! j. |- |8 v( l6 W, _4 x! P, ascrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets., w, K) H2 v. S( b/ ~6 V
* A1 ]7 v+ Z) A6 a
A look at credit markets
2 O Y7 J" Q$ u* W; j( j8 I Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
- i" C7 b; u6 ?: J* U8 ]' l7 I( {September. Non-financial investment grade is the new safe haven.+ t* H# x+ x) @
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
* ~6 O8 D0 G! _9 }then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
' [1 M- I- \ S. ~ Cbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
! w1 z0 Z! h8 m/ Vaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
, F9 Y7 b! E9 Z# o# J1 }$ Z- `CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are# s0 X8 x3 d& J% D3 a3 r* u
positive for the year-do-date, including high yield.
9 { f6 n4 ~- F: [* X2 d% N Mortgages – There is no funding for new construction, but existing quality properties are having no trouble) J; O& s; x1 w+ j
finding financing.( b8 a/ {( ?; C! o5 n
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they7 Z3 q/ `1 A. z
were subsequently repriced and placed. In the fall, there will be more deals.$ `( c4 V* [/ T# U( _4 {0 N) y0 V
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
& ^2 T/ E! y6 [" e+ ?7 z3 Jis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
2 m9 S( e' _" Y# e9 J5 {; sgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for- D0 v% `, i( D! m- Y
bankruptcy, they already have debt financing in place.
: h. `4 E" ~- a; G. K3 T% r" e European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain3 i O# f! ]/ U
today.
* \: r9 x# y' N8 K' | Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in& Q" U+ ]( L, F, C6 F: i
emerging markets have no problem with funding. |
|