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发表于 2011-9-17 13:16
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Current situation
4 H0 f1 A; L/ D" T' e5 l& f" l3 x The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long) M: L, e1 ~. i- _8 B7 I6 u
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may- U+ q) d% q I
impose liquidation values./ J( s8 K7 T9 s5 D+ E" u0 z
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
& ^9 K1 U; _* I1 c0 `! E+ |August, we said a credit shutdown was unlikely – we continue to hold that view.
( `1 T& S5 _& `+ b# r5 C( v- @ The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
, @6 n1 f& k$ ~5 Iscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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, ?5 ]* T _7 @& D! ?3 _A look at credit markets3 }* Q( w% m1 X# T; Q, k, w7 M
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in8 ^* [, t0 j E$ k. d& r
September. Non-financial investment grade is the new safe haven.' U9 D3 @' a) _2 X
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
1 ?# q2 Y3 d/ p8 A3 mthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1( s$ j% q) ]+ q+ l( X7 H8 |; s
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
1 a9 Z1 R8 E. J2 M$ Raccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
2 P! u( P" B5 B) `# }, [" ICCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are6 ?+ d: K# W6 \* K% P6 ~! I$ H& i; W
positive for the year-do-date, including high yield.
; H1 L' P. h8 x; V( _; p% Q5 { Mortgages – There is no funding for new construction, but existing quality properties are having no trouble2 H9 }7 F( |: r! X) |
finding financing.$ [# y0 s0 \+ ^3 {' X
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they A- P Y. \! g+ I: T
were subsequently repriced and placed. In the fall, there will be more deals.
* f" z) i5 k6 w0 y+ I9 N Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
, D. ~! ]6 Z( w) Kis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
9 n j( X; J. h3 a- lgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for; i: E4 @" M6 c9 R+ J; p0 b
bankruptcy, they already have debt financing in place.( J3 v; B: c6 z# v- w* g0 G1 F
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
9 U. {# e+ p: g$ A$ mtoday.
9 x- g3 Z* S+ Z0 a6 h Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in& I( O% W7 @' v) L2 s: @( `
emerging markets have no problem with funding. |
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