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发表于 2011-9-17 13:16
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Current situation; U1 w- i9 D8 w( Y! H
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
+ L$ K9 v3 Y& s; _# M1 Z% p+ [% Kas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
2 _9 h! }, n3 ~# h& f5 P* N( N" w' Zimpose liquidation values.$ d3 R, h. g/ a8 \* X
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In, H' {- P. {1 H
August, we said a credit shutdown was unlikely – we continue to hold that view.
* Z0 E: M6 M- k( p! z5 M6 a- g The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
9 D. L6 x. z& l% |6 [+ fscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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$ j3 i& m5 l" h( J% LA look at credit markets, P( C* o, c2 O- v% G
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in( S6 ]9 Y! g3 e3 q6 |
September. Non-financial investment grade is the new safe haven.
! O' M1 _/ I4 }* R High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
- I: Q7 o' h8 F; Z" x- b# u! cthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1. o* o7 w4 o9 ^. d& v0 @7 \8 R9 Y
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have. i% f9 v ]7 r9 q( W& j9 q
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade6 u( {) Z; `! o9 l
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are; S% D# l: j& Z( G) v8 ~
positive for the year-do-date, including high yield." D$ D$ \8 U) M8 q
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble, \/ Z' {) B4 h) U4 s+ E0 B
finding financing.
. z4 D/ {. h& J1 {# d! h$ W Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they" H- ?6 H/ r5 B3 _$ a" F
were subsequently repriced and placed. In the fall, there will be more deals.
' }0 G+ G, M9 \ \( W4 q Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
( B. Q6 i* Z" u$ t5 N( Z7 N4 l" Mis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were- d6 O- p1 y' ` m7 }% ^2 c+ l2 q
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for3 ^' N0 B$ A* R' P$ |
bankruptcy, they already have debt financing in place.
) s9 z9 e- o1 g9 z+ V; ^5 ] European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
* }% Q! s# M* L8 Etoday.
: l r( j7 k* O l Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
! j& T; S7 I- D7 Xemerging markets have no problem with funding. |
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