 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
: s, \$ w0 y% c# P The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
+ s6 D5 r) [- X! bas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may: B" ^/ B6 k! I4 B
impose liquidation values.
& C/ M* A: A* G( U, V1 X" X/ e- M In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
9 u- u+ B8 \. D- s3 Z) wAugust, we said a credit shutdown was unlikely – we continue to hold that view.
0 z; ~& F8 r& A0 h The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
8 V4 J7 i, {* S) F1 e3 sscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.# V5 Y# l. r0 G7 G
4 S- J9 a1 W5 R1 |8 [8 h2 Z: v- a- I
A look at credit markets1 o8 i/ a7 G$ W9 S3 t3 P
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in- l5 c) g8 ^: @( i( g" L" p
September. Non-financial investment grade is the new safe haven." t' l* Q9 `/ }3 c
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%& D% g1 T$ p' w
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $19 j) c9 R8 g) Y, M& \5 V
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have1 m' G6 U3 O/ o, c5 U
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade2 e9 |1 F2 ?" R& \
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are9 k+ X7 |- a6 }4 W7 k z& Z) v2 y
positive for the year-do-date, including high yield.
5 e2 c1 u6 I, \* H) u" x$ e, r; R; I Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
9 ]& @/ D, _9 Ufinding financing.
+ K# U- ]! \/ u- h: y' T Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they2 k2 x* I9 q. p
were subsequently repriced and placed. In the fall, there will be more deals.
( f) w$ x* N: } Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and/ k8 n) _& Q; t; p1 {
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were6 C9 u( \, H- j: W- ?( d+ Q5 m; E
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
6 Q6 x0 \% f L" Mbankruptcy, they already have debt financing in place./ _) I' J. b( w
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain( b: P/ r5 T j1 A
today.- c" L5 h" }! N# s" a5 E. ~$ h
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in5 l+ g. B3 m; e
emerging markets have no problem with funding. |
|