 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
$ _4 H3 x- b& X% H The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
; t+ E; a( K" j/ q" B0 t" pas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may" ` M. h2 x/ {& P N2 T2 z
impose liquidation values.0 D/ x6 G) X+ ~& O
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In3 H( @6 N& [7 x
August, we said a credit shutdown was unlikely – we continue to hold that view.
( e' B1 K/ f4 \+ Z- r$ B The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension' I$ U/ C9 e5 S8 T
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
P4 c9 `! x5 w) t7 D" u3 G1 l& Z# ?( N7 t, d
A look at credit markets
1 Q8 _; B5 ~# B& B2 l+ x, x7 ` Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in3 @* M3 M( Y4 ]$ O8 H
September. Non-financial investment grade is the new safe haven.; }% V' H, x8 ^* B- l
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
# ^2 r( P |+ S" ^$ _' o, ythen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
* n" p1 s. C" W9 U' I# ~0 ]# e8 `billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
) n+ R0 L) U, K1 O1 \access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade, U% K" ]3 [$ J6 p% r
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are! V$ | ^( t, ^! l8 z6 j1 ]5 ~
positive for the year-do-date, including high yield.
! a, B! I# c# I, p/ \: W4 ^ Mortgages – There is no funding for new construction, but existing quality properties are having no trouble0 i; R1 c4 U. j+ \( F: F5 J
finding financing.9 O' N" r0 Q- D* ^2 O
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
0 T! ?8 J5 A8 @( e& Nwere subsequently repriced and placed. In the fall, there will be more deals.& i; I5 K& `/ a( U3 F3 S
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and% h: h5 D% \. M2 \: v V
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
$ P8 Q1 C* h" i$ v2 Q. M' Y2 Ggoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
; E0 K! B6 H8 K# [ p" Jbankruptcy, they already have debt financing in place." D, w) l% E/ G# `
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
; i5 Z' W, \; s, ~today.
' R# k o) ~4 |5 t( r2 d0 m' F Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
- ], N1 F3 L0 J; J6 Zemerging markets have no problem with funding. |
|