 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 C) i' v! I# n2 v
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long& |; k* d& ~0 c$ p$ f
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
6 S& z, }; |; gimpose liquidation values. f: [) r) {* g# _1 W
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In& I( s" o) B; Z! Q8 r* X1 Z0 H# x
August, we said a credit shutdown was unlikely – we continue to hold that view.' O5 I i! n: K7 E- T
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension' _ g' s* u c, c
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
6 [) y' Z7 `9 _; n# w: \/ k- w+ f& Y+ B
A look at credit markets# B' x: E" A! q& H
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in" @/ d5 v2 Z0 z9 ^
September. Non-financial investment grade is the new safe haven.
9 ?- h k& Y, i3 F2 t7 N8 E High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%$ ]. K% x9 x9 N. k) h
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1# ^" V7 r; @" t: {$ G9 {# o
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
d& E3 w- t4 D0 }; e$ T3 `access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade2 F* M$ r" O% R/ h
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are% n4 f; O; [& h! q. {( l
positive for the year-do-date, including high yield.* A6 R" K( j5 U* I
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
, b6 f% A/ h4 T: Z5 y% n( ?finding financing.; b7 K1 \; B- s6 U; _
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
! h p8 \4 }6 o: V/ ^6 V8 Rwere subsequently repriced and placed. In the fall, there will be more deals.
2 z$ u Y. @& ^& M5 f$ Y- C, H Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and4 ]( n, c1 b6 q( x
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
! N7 ~' y# D. Qgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
: @* ]! m2 K0 ?3 N4 jbankruptcy, they already have debt financing in place.
4 | r5 l# z* x: ` European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
5 @; k! F* y% J/ rtoday.
P$ r7 O( L# k( @' b" J6 [ Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
, V' m2 S" w. h1 Vemerging markets have no problem with funding. |
|