 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
5 [* Y! Y/ z( R+ V The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long$ n+ E! O% q3 q) o
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may* n, r2 L# K0 Z! A" ?
impose liquidation values.
+ D+ x8 i' ^: ^ In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In& ~+ h: ]! T8 o- l" y! i
August, we said a credit shutdown was unlikely – we continue to hold that view.
$ o- k, j" D2 }( D& n The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension4 k/ |% B$ ?& ?7 A. s$ T# [
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
/ u5 v8 m3 g; x9 Y$ \ S) H J& ?8 {7 x
A look at credit markets$ E, s/ f: F8 |( B l. I4 A& a
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in/ M' @6 A' P4 d0 G: r
September. Non-financial investment grade is the new safe haven.
& F \ X) v5 W/ c High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
/ h; E3 Z# q9 ~! h0 A% P% H7 a% Mthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $18 o. }6 J4 i1 D
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have4 h3 T/ G% W" [
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
' U& S2 C& c" m8 G0 D% R3 ^7 aCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
( I" g6 O+ [0 y: c5 I! Lpositive for the year-do-date, including high yield.8 T- g, ]! d; E( u
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
# P; j" Y6 D% i" Qfinding financing.
, a: ?, |3 v! L2 a) s Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they9 r/ b$ J* b: p) a" d
were subsequently repriced and placed. In the fall, there will be more deals.% u8 R/ ~5 {% T! ~7 [4 T
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and- C3 U4 v, Y! N( L+ B3 n
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were+ @ e! K* S2 K3 p5 C
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for( E7 k# A6 p$ X* r$ ]) C
bankruptcy, they already have debt financing in place.
* W7 _% }/ b3 ] European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain$ |6 ^ y2 d5 U- n& |! Y4 X
today.
8 j" L4 n# Y1 |/ P a Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
& Z8 l, S+ g' \: m# g- s) Nemerging markets have no problem with funding. |
|