 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
* ]8 |/ ~4 v$ } The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
; x" q( w" z# W) Gas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may5 `! a# ]; |5 B, D" p9 N
impose liquidation values.! S5 v0 _+ q: z/ o
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
& \8 e' H+ t; a/ W) F8 G6 zAugust, we said a credit shutdown was unlikely – we continue to hold that view.+ S2 g; l* g5 A( y& R Q( p) J
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
& P7 h# R8 B% J7 j( j; m5 Zscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
% @( y, x% x3 M5 U; U! }; N
. Q2 e( N" h( U6 L7 NA look at credit markets! ^: }2 A& h; ~) ^1 E
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
! w8 Q9 z; c. w& |September. Non-financial investment grade is the new safe haven.& }6 u: v) I% s4 k
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
6 G4 H/ G/ k4 n7 c) Tthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1/ b" H3 J3 k( l4 o {" M
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have) p8 v4 m( E4 k
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade- I5 x/ _9 C' Y1 O& | C0 z* m% `
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
& b$ F! W9 ]: A. n' }positive for the year-do-date, including high yield.) |9 ]/ K$ X7 O7 ^
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble/ N# u: ^ Y- g' ]+ N {
finding financing.
- C: @5 U- I! {6 n Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they6 R2 A6 R- g9 R
were subsequently repriced and placed. In the fall, there will be more deals.8 H3 j6 d% {. B6 c# O# H, P
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and; g3 V: @9 q3 ^! y
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were& o: a9 w- U; l! D+ `
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for% W' c0 _2 L* \6 v: g
bankruptcy, they already have debt financing in place.
8 f6 u( G" H' `; C7 a; | European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain! v% t7 w7 u* t! ]6 J8 B: s& e( d
today.
8 p4 H/ N' K3 @# A2 B Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in+ t4 }/ v- c O
emerging markets have no problem with funding. |
|