 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation8 J$ S c( w2 I9 {
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long( ? s$ S6 @- H+ o* D0 w
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may& [5 d3 D0 f" L/ j
impose liquidation values.- C- s" G( q: V6 Q
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In% B' x. S1 N; @$ s0 V" X+ M t* i; v
August, we said a credit shutdown was unlikely – we continue to hold that view., O5 M+ D1 o4 V( ^! B: }# l, c
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
7 r4 \; `) A, o$ rscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
) a z1 e# h, B
5 U* _- x$ j7 g4 X% o9 cA look at credit markets. V: u# J2 n5 d( P9 m; I8 z# E
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in8 f5 k. @8 [. Y A% _9 x
September. Non-financial investment grade is the new safe haven.
! o \7 ^" \# w; p% T, Y: G High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
+ _2 D/ \* C% X# E( B( @5 z/ Uthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
$ k, K6 ?% O$ [billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have9 y. C* X, Z5 X1 J
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade( Q2 ?8 W5 a7 A0 z
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
& G1 h5 @& g' Upositive for the year-do-date, including high yield. D3 P+ U) O3 R+ \
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble8 f! D" Q/ X) d0 Q. Y0 w
finding financing.% I' H# V8 h4 ?# G! b
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
. n" s! w! i( ~+ ~2 n5 t s$ swere subsequently repriced and placed. In the fall, there will be more deals.2 E) z; j d2 B1 m8 m0 ]1 T4 W$ j
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
3 v5 l/ a6 x, u* C( Wis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
6 @* g p- b3 n" ]% |: Jgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for4 J! J6 b8 o5 Y5 V* ^+ t! f
bankruptcy, they already have debt financing in place.
0 H- M* Q% `5 |$ v) v- ^ European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
% q/ l! {9 y9 \2 y4 ktoday.9 M, d4 b' x: P6 |
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in; w, R8 Y( a8 N& ^
emerging markets have no problem with funding. |
|