 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
$ x) v# ]1 m6 |; r! D z+ I The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
6 d5 h% s4 b6 l& ?3 q2 J; i; cas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
7 R! l- `9 W Qimpose liquidation values.6 w2 l2 l" s" V7 S
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
) a: G2 g: g6 _7 I GAugust, we said a credit shutdown was unlikely – we continue to hold that view.
) ^" B0 B; r3 b4 y! m [ The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension6 @0 |( \# W! `
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.$ J8 Y. p' i$ p
9 R8 O1 X4 L- v: M7 |6 uA look at credit markets
3 G- L1 c! |5 v( p7 p v* v Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in, W+ l' H& U5 L8 M8 s2 ], Q& e
September. Non-financial investment grade is the new safe haven.
) q3 v5 X& x- m High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%& D5 j- y3 v% O
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
|" w( e! f* q* ]billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have0 E8 l6 u1 y; ]4 k4 H
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
2 R4 n4 Z7 `1 |% E& vCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
2 E1 N* c+ O( F1 M1 ]% \2 a. Apositive for the year-do-date, including high yield.3 ?. O9 p/ J2 C) F! ]# O& n8 }' c
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble9 P1 x b$ o3 Z& \2 o2 }3 n
finding financing.
: N W) @+ c2 r, D Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they T; \3 c3 F+ s1 j7 K
were subsequently repriced and placed. In the fall, there will be more deals.
4 o5 S7 e- u1 r7 @$ p Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
$ ~9 ~/ R. ~9 @" r+ g3 {is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were ^6 O* ]# P1 i
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for6 @* R7 d( Y! b% I
bankruptcy, they already have debt financing in place.7 {2 m) n& s# q
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
G& a: \! U$ E5 \today.4 j, Y6 |+ S Q: d1 ~; c3 j8 `
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in2 y- d' S: l: I* i: z9 F4 U
emerging markets have no problem with funding. |
|