 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation0 j( w; A: L& R! A5 |/ q
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long1 r" ]; V9 k& W
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may( Q8 E' P' ^$ r
impose liquidation values.+ R8 [/ i C- w" z
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
& d5 G6 j/ M, a5 cAugust, we said a credit shutdown was unlikely – we continue to hold that view.) N) P* @6 P# W0 w5 G
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension Z6 H% _3 C: @* R
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
+ M7 w$ g3 t0 @+ B+ M$ f* Z% c4 g+ Q) F( X; e2 d7 T' E
A look at credit markets- G/ T; V: C8 B+ s9 o% d
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in3 d4 p3 ?/ D4 \7 }& T
September. Non-financial investment grade is the new safe haven.6 f) y) R, z7 }% K
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%- F8 C) r ?) O
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1( l* [$ K5 m* S5 y) e
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
: I* O* V2 N6 Q5 G2 Baccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade' B- h" P$ n9 ], Y' v' c& ]
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
& E, W1 H' C) T u. k0 c; `positive for the year-do-date, including high yield.
3 B2 {* s8 {: [% ?7 z Mortgages – There is no funding for new construction, but existing quality properties are having no trouble, [7 u8 a. G6 W6 H5 \0 }
finding financing.5 `& E0 D8 E% j
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they0 `1 i4 W1 W, T; o
were subsequently repriced and placed. In the fall, there will be more deals.
" s" a' N6 c5 F4 q2 S& Y5 h- x. t Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and" B& J* \* i( |. E6 O7 ~5 O* \
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were' @ j: `' f- G6 G! K9 h3 |6 [
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for/ `/ R: n. ?( f* @; P6 j
bankruptcy, they already have debt financing in place.
3 W' x4 i$ G6 n" z European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain+ I2 x D& X9 u. P
today.
0 j7 M2 L8 P: L: K; h Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in- |( t! e; V# X9 d& Y! }
emerging markets have no problem with funding. |
|