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发表于 2011-9-17 13:16
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Current situation9 O7 Q& [. Z3 J0 {" D o
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long9 J' r) U: U2 G2 E _( l8 u/ O
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
2 n. e P! L7 h/ Q. }4 ximpose liquidation values.
" d& F) S2 [. Q In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In4 O: \$ Z" {% ]3 Z8 X- |
August, we said a credit shutdown was unlikely – we continue to hold that view.
4 w! i0 d. B9 j The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
( F$ K2 Q; w& a4 B) d, V( |. bscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.1 V9 }" w: V6 @4 y M( e9 B
+ u" E9 n2 Q/ K* |0 d; I/ x, QA look at credit markets( M [1 h' R$ a# K) ]
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
3 g( z/ V' z) Z" G9 bSeptember. Non-financial investment grade is the new safe haven.- q9 G/ `8 @& u( I Z
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%6 ^& A) G) h6 E5 x
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $12 D+ h, _9 s: C7 U7 e
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have- a; e$ H6 l" U) s% ^
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade5 U0 E% Z) m/ w4 T" a$ w
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
! g! m7 `# \8 y& V9 Epositive for the year-do-date, including high yield./ J: M& N% w# B# z/ n
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
6 y3 @* Y/ ^' C* Cfinding financing.
/ J$ c4 U8 x# I0 U1 G7 b Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they, m' W: [# ~9 N
were subsequently repriced and placed. In the fall, there will be more deals.
- J( J- H8 N+ E0 G$ _& w Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
2 i& @9 H7 Z" w6 [1 b0 zis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were% S: X( \; V( z4 l4 N1 u9 |( S. S
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
. |9 |7 ~, a# }, V' _7 Z/ S" b2 X) rbankruptcy, they already have debt financing in place.
# s( Q+ g6 a4 b# D: I* S European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain4 R3 z* ?- ]& p* _
today.
5 P1 B, O/ ?, N/ \# B i. I/ S( j Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in8 _ G2 N7 e$ M1 F6 X
emerging markets have no problem with funding. |
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