 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
, Z2 T/ \% P( N& m The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long8 l" w4 E3 c" `: k8 j( j) c' M' I4 |
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
4 V4 |/ b* c$ F# H8 jimpose liquidation values.
' R; }* T# j5 ] A8 c% E In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
0 @' F& I% C. g; P* ]1 w; OAugust, we said a credit shutdown was unlikely – we continue to hold that view.2 P$ Y1 j" k: V" `' T" R& U
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
& D7 B+ @8 {1 ?8 k2 Vscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
( J/ a; _6 [% x# `5 W9 G. H: b7 F2 o9 R) F* V
A look at credit markets% ~5 F& C$ f3 _9 h. n4 m
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in3 f: a5 ^3 H$ \: |- d6 U2 Z) i
September. Non-financial investment grade is the new safe haven.
/ M- B6 M I4 e0 V! d' O7 O High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%4 H8 c; M/ X5 G7 L
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
' |( u6 G. b- I+ |billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
. e# {/ ?6 m) l2 jaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade/ R3 l G4 k8 T, s- V8 M" ^. |8 a
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
9 T& z5 q# l+ K: `1 _positive for the year-do-date, including high yield.
9 Y: C6 s; `; q! H# r& Y6 i- V/ ` Mortgages – There is no funding for new construction, but existing quality properties are having no trouble! P5 G- P) X4 S E8 e! n6 _
finding financing.
9 O T, d3 w- _7 E% P) C Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
+ r% \9 F1 j' k" H( ]were subsequently repriced and placed. In the fall, there will be more deals.
7 [' U8 Z/ |2 }- X Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
# V# s! g0 g& cis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
( l* i8 {0 [+ J. b0 H3 N u& c+ Igoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for$ [) F) Q/ f% H8 L9 S9 h. {( S7 \
bankruptcy, they already have debt financing in place.
% x* w! z9 [, d6 [ D European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
( @& W: a( | Y) j6 Ytoday., Q7 V- o7 _: i- {1 m3 H, v
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in. u7 J. c5 W7 I3 z+ M' L) h
emerging markets have no problem with funding. |
|