 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation0 h9 }! i! T( W0 g: R6 D
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long/ s8 b0 {! h* V$ J# b
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
* p! Q& R, {7 H3 R7 t! qimpose liquidation values.+ b( u" |" J: w0 Z
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In. H' X& A5 T4 w7 {
August, we said a credit shutdown was unlikely – we continue to hold that view.) W2 W# V' k( q
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension4 K: w" @( @: N+ m8 w
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
; @* ?' U! l! r" W, M0 ^* c" ?. B7 m$ p
A look at credit markets# G, S# X5 n9 }1 C9 N) f) u% q
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
' d$ m, Z1 Q6 m' E6 |9 C# l6 d# USeptember. Non-financial investment grade is the new safe haven.
0 F2 Y2 B! [* ]4 I$ S. { High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%) b e9 W" [) U5 E2 T1 o$ J
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
' \8 v" |" c0 W: z- Bbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
4 m) D, w+ f: }: ?" N2 _access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade6 J: F7 T5 n3 [/ U
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are6 o% w7 W N7 Z, p* x" t- D+ I- z
positive for the year-do-date, including high yield.( ~- {( R0 T) v$ B3 B+ w, t
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
" w8 o' _) b& Y4 C$ ^& d. }3 V* m- }finding financing.) ]4 ^$ T3 y8 ^7 x1 c4 u
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
) _8 j5 s, I2 \: M' d9 ]) j4 [7 |1 i8 m- owere subsequently repriced and placed. In the fall, there will be more deals." b+ E9 v6 s1 O8 r' L2 T, z
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and6 ^! F5 J1 V( D9 V
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
1 T+ U6 r/ q- h; z* M8 H4 @going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for" i; L" G. w; ^' [0 f) q
bankruptcy, they already have debt financing in place.
2 c( X1 |# ^- b# w9 q$ M9 J f European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
' `: C' N% K/ }2 x* i! O3 [today.3 e( U! D6 p" o3 l
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in3 \: h, V" U8 A, ]3 X1 [' P) n% i2 ~
emerging markets have no problem with funding. |
|