 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation8 P4 I4 F" }# q) B, b! s
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
* _) `& P3 y4 x6 ~as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may8 r0 a' r/ q h4 u4 _$ C
impose liquidation values.7 \3 }, g1 @& e
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
]; _ a% u2 }8 a/ _August, we said a credit shutdown was unlikely – we continue to hold that view.* r) D! d! k6 m( u8 Y2 s0 j a
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
3 \: N: j# n$ t Dscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.; M) k, z' ~! w* @3 V
& {( U; w6 R2 T) x9 H+ H* F4 _# tA look at credit markets
; @; `* [5 |# {) v4 ]; m7 X Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in: I4 i& h$ a3 F r1 B _
September. Non-financial investment grade is the new safe haven.
" I" Y% \8 I7 I9 } High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%" x* `/ n ~& c" @+ B& s
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $16 x- `/ V" E+ V* Y" _7 Y
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have2 l7 p2 p( ?+ c% H, G0 g. Z
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
' n7 a, I6 k$ l# |% pCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
7 v) S& Q! V5 {2 G! ^positive for the year-do-date, including high yield.3 M/ Q/ m; _# O/ P* V
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble H1 `5 u0 P h2 Q% L- J
finding financing.
6 i0 x' D" z; e Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
' f$ V& K8 Z5 ^- O/ Vwere subsequently repriced and placed. In the fall, there will be more deals.
9 `0 @$ O: T" a6 b3 M Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
1 i- V# X" W" c- xis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were- r3 {3 ]4 C4 Q1 E* Z
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
5 }7 {* e7 I% B0 g& f0 i7 [; H Gbankruptcy, they already have debt financing in place.6 M0 E# T- ^3 t
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain4 Z6 D4 I/ S6 f+ M u( u
today.
1 X% F; {. x; T) h/ j2 P$ H Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
: A" [9 e" e& e# I! Remerging markets have no problem with funding. |
|