 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation1 x+ t7 _& ?) Z( b6 O2 i
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
5 h f% y0 \$ F9 Y! vas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may6 R6 o: w, A- S
impose liquidation values.
8 V0 p- m7 e+ V% j4 u In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In' w/ `5 |- d% a# X7 V9 \
August, we said a credit shutdown was unlikely – we continue to hold that view.2 Q% l3 X* B, X) d- s. U9 |' B# P
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension! n& P6 D5 q5 w! p- n' i
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
$ ] |- W" I. E+ F$ r
7 z2 t0 |" k* @ C, B" MA look at credit markets
- W/ h; ?0 i* H! R' W; G Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
: U- z& f; G/ G" V3 I7 }$ gSeptember. Non-financial investment grade is the new safe haven.
* W+ o- O5 Z7 { K |9 U0 x! b1 O High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
5 p- S1 c& Q9 p3 ~then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $18 x$ i1 A5 _% R3 i( w9 g
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
& z0 u J, F0 W. p% x; Uaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
& Z3 a: F, C5 g( p8 ^0 Z4 b0 r+ HCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
: P4 o/ ^4 w+ V/ X7 j# l% s, r' n5 Jpositive for the year-do-date, including high yield.4 X, G2 }. G/ U- X
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble2 i/ h5 W4 g& H, ?9 i
finding financing./ s' @- F, G V5 R
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they I! k5 s( U* Y) I! V; Y: |
were subsequently repriced and placed. In the fall, there will be more deals.
- f) J1 y' W# ~ @' r8 d8 v2 M/ a Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
' W" h/ z1 i9 p! e8 [2 p8 P0 gis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
+ b1 l8 K8 z- H3 f* q& F3 I% G! A6 |going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for' r$ ]/ a9 c3 M* {9 f/ }% z
bankruptcy, they already have debt financing in place.
" o2 j4 t9 m" x ^" @2 V European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
& C& H( [7 T1 K" Ytoday.8 N4 u/ l, a% d) j: E
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in- T0 n4 `, \: s% j$ j
emerging markets have no problem with funding. |
|