 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
2 x2 K" X; ?( w+ l2 e/ x6 l% i The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
1 Y$ F) N" o( ?, r( C4 {& A3 X7 Cas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may0 b, h- w! `9 D
impose liquidation values.- T/ Y+ o) I6 D( N4 |6 J
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In0 \0 E; k. I, S- C) {" V. E
August, we said a credit shutdown was unlikely – we continue to hold that view.
( S1 D* I0 V+ ]7 Q" A" y The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
& R' _4 a/ Z: n/ M r- O$ i$ Z' ?scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
( Z2 d/ [4 {9 o8 F! F+ n/ Q7 y! U# Q# x
A look at credit markets$ i8 a$ u0 c# u- l9 N
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
1 |0 I% @% _7 G; B1 `, p1 h7 M! ?5 gSeptember. Non-financial investment grade is the new safe haven.
( W# a( ~7 o. \$ J: B High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%2 n" S. r6 g7 ?% e
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $16 W' J( O. R' I3 G( d" Y% t5 N
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
+ ^8 z7 V q# kaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
2 x$ A8 C7 X6 h1 Q6 h3 ~CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
7 Q( f( `9 }' x) R$ y7 h2 Gpositive for the year-do-date, including high yield.
1 K r* Q( z3 b3 M1 F% t& A Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
$ I$ F y2 W) k3 ^, hfinding financing.
$ V& M2 \" } K9 M5 a Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
. n' P1 d( j K+ C1 l0 Rwere subsequently repriced and placed. In the fall, there will be more deals.
" A* b: q7 l/ w! A4 R7 M* |2 j/ Q Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
( C$ N* O9 r6 `is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were) N. u6 ^, i4 P5 p6 `' P/ i# H
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
, k/ W2 p: `; vbankruptcy, they already have debt financing in place.
) C( K$ \+ e. Z$ ^- W6 E. b2 q European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
) x7 }+ P. \( y& m b( @! Z6 otoday.
9 a' f2 A m6 v Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in& R& I- p( T% |; C5 \+ x* q/ E
emerging markets have no problem with funding. |
|