 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation' @3 k& \3 W% A' ~! {- u$ I
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
$ P6 B' ?9 ^% ]4 A6 U- oas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may$ ^3 T* c9 a; `# _
impose liquidation values.
9 g5 B/ u4 S) e2 s+ G# j I! \/ w6 n In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In% J' J, H. j4 U' V
August, we said a credit shutdown was unlikely – we continue to hold that view.
% L5 G' A7 B4 S. z The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
# z3 B2 V; S$ l$ w$ G0 G$ Tscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
; Z/ c. Q$ ~- l; e
) ?6 ?$ T6 a; C7 @) e, ?2 YA look at credit markets
* ]& u5 L O% _ Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in+ Y [8 F; c" ] n3 j+ `
September. Non-financial investment grade is the new safe haven.. N. H9 P1 z, i- J) {: L o; W
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
) b3 _- [& F! v+ A5 \% othen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $19 E$ g9 s/ z: y1 d q, ]
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
7 M; |, d0 q: T0 ^% r6 g: H9 Laccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade/ V8 S$ _$ T3 A0 N( e# ]
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are5 g4 J. ?! m8 J7 @
positive for the year-do-date, including high yield.
- D5 y' c/ |' x& G- R' {/ F: m Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
& F, V1 B$ e8 X: rfinding financing.
. {+ K$ c) p3 _& ] Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
/ M! t; h3 H k# I4 @6 Bwere subsequently repriced and placed. In the fall, there will be more deals." r0 q$ F4 A5 m
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and% t7 N9 t/ f5 O
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
8 e/ \7 ^* a- b" C. ogoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for# E- o) o! V$ @, D3 K
bankruptcy, they already have debt financing in place.9 g* ^8 Q' i" E+ I8 U- U( s' T# H& d( {
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
9 _6 r4 I+ s* ?; B+ Ltoday.! y1 f' m" R8 L" ~
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in1 ^% Y% O0 m% r' x' h1 Z1 M2 i& B
emerging markets have no problem with funding. |
|