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发表于 2011-9-17 13:16
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Current situation2 D) t/ q1 q1 g, w5 z' m4 W1 F
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long' p: Z$ ]0 ] C; X' {6 [
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may1 a* w4 |; d F2 w* l2 }
impose liquidation values.
/ U/ E! g2 B; c, R6 F5 S In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In0 b- }4 }9 P, G" Y' \
August, we said a credit shutdown was unlikely – we continue to hold that view. t' U5 W& c6 c9 {, D
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension; {# a0 Q! u% M' }3 ]0 n& d
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.# |* O3 W" W$ w
0 u8 y: Y2 g7 H& U" kA look at credit markets
: V' h& S7 N7 X5 \+ E3 r Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in7 Q' ^! H( S3 y
September. Non-financial investment grade is the new safe haven.
9 C5 J5 ?4 Z, H0 L; o4 `3 I High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
7 T4 R0 I2 \; L' ?then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1, x: r8 t+ `9 G/ p9 u" F
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have1 R& {6 V" g8 P8 g( M5 k7 I" ]! J
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
' e) M! N+ g5 R* |CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
7 t/ v' c& Z$ r1 vpositive for the year-do-date, including high yield.
/ {- y! m) ]" R) [' b* v% o6 d Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
% x# M; l: n4 _( X' xfinding financing.& R2 q" `. x3 K4 `& d+ e) L! f/ k
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they, u" ^1 `+ ~8 s% d+ f$ V/ W/ N
were subsequently repriced and placed. In the fall, there will be more deals.
* {# V9 X- t9 L3 x/ _ Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
4 W+ ~) v f$ W5 jis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were/ }/ H8 S6 b- A
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for; q' \3 R$ N3 ^7 T/ |
bankruptcy, they already have debt financing in place.; X3 J0 M4 P7 A
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
. [# x; ~. k, G2 T) n9 q ctoday.
# p% l' e1 y$ K" j+ J# P2 c4 G Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
- M+ Y4 k5 ?* u! T9 q: iemerging markets have no problem with funding. |
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