 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation2 r& @7 H/ H+ m
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
* R* m5 U5 @$ m m3 v; qas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
. }2 H, x6 [+ |% c% z+ ^/ P0 ~: C simpose liquidation values.
# E1 W; P7 E2 ? In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In6 F% Z& b1 V" C9 f
August, we said a credit shutdown was unlikely – we continue to hold that view.
6 X: a6 v W; U' n* A- V( {& E The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
/ l7 z( O7 ~1 f5 Y- {! I0 n4 y: X( ascrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
9 O6 \, A1 U% D5 W) M! N6 R% f/ b6 e" H! `$ k! A3 \
A look at credit markets: {, w y5 F- p& |+ I' d
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
% {+ P4 I' n4 ?September. Non-financial investment grade is the new safe haven.( X+ ~# j7 n. d5 O0 D& t
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
+ e7 Z) v% ^2 r5 u# G( ?. d$ U L; ]1 Ythen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1; O& f* I( C/ K+ `+ ?
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
1 ?% d/ s: G2 E3 ]: m% Waccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade# C( S/ Q3 E% t3 X
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are: q/ H$ k5 F' w+ L# H$ V+ n- r
positive for the year-do-date, including high yield.
# e" I2 ~. i+ f- p6 I: X Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
0 I$ O3 f# c2 H4 h" `4 tfinding financing.0 ?5 } X: W W6 {: B. _6 g
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they K$ H* `! g# M; c$ t* e' c
were subsequently repriced and placed. In the fall, there will be more deals.) U3 a2 q$ m+ @- E+ o9 r+ x4 `, Q
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
% U2 S1 h# c5 Z+ k; p0 A; u% W; yis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were9 p; G0 c* _1 {8 |% I
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for$ Q6 C6 Q2 M" s4 u" v2 S1 d; {
bankruptcy, they already have debt financing in place., B0 M& o5 }. k8 ^: D
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain5 l0 ?) S! t: [5 T* i8 W. Y) D
today.- D$ v/ w9 C A+ M4 }8 j
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in. F5 ~' ?8 |' y4 m! R* Q0 X2 r
emerging markets have no problem with funding. |
|