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发表于 2011-9-17 13:16
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Current situation2 b q0 l6 y2 ~2 h! k$ l
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long2 q& Q- L$ c1 A1 n n2 D
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may/ K/ C% |5 Z9 K9 N7 m( A+ ^
impose liquidation values.
. [; n& M \: W% e In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
5 t1 u$ B# I6 C fAugust, we said a credit shutdown was unlikely – we continue to hold that view.
, }# z0 Y# ^5 ] The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
5 |$ M# i. @2 b2 N$ hscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
" x6 `) P+ b3 y+ @% {' Q- i
& b+ f p% t: T2 v# V3 HA look at credit markets
% d4 G, D7 o. X5 t1 ? Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in, s% G2 w' I1 T" m
September. Non-financial investment grade is the new safe haven.
, s/ o/ X. } u! e) ~2 }4 J3 D High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%' F" r+ x" r2 u0 m! i, z7 I
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
: M0 m5 S* X+ X* T+ _# C/ u; bbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
$ q) F1 j2 c2 [ V, e; maccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade* j. |( t! a m- {
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are9 L4 S8 [4 t3 f5 m- j P" N
positive for the year-do-date, including high yield." ? b/ {) O. N9 U' g' K
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
8 s8 }0 |- N A" vfinding financing.! b/ G# P2 i+ w: M ]
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
7 U3 P% z3 q U2 m! xwere subsequently repriced and placed. In the fall, there will be more deals.+ l9 e( e7 R$ j( L$ d/ H; i* f
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
0 i$ l" t% E/ a- K: [0 W4 U' U. ?is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
$ \# G/ Y- W$ \" }) U1 b( Qgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
& g5 Q8 b5 J6 d- nbankruptcy, they already have debt financing in place.
7 }, N4 C1 k3 r L$ [- r9 Z# A7 Z European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
2 m& e( I( e9 S% [today.
1 K" f! j! e; ~8 I5 e8 X Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
8 u, q) ?( ~: S: O; Kemerging markets have no problem with funding. |
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