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发表于 2011-9-17 13:16
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Current situation8 K1 u5 n) i( s: ^! P0 m; Q
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
( `9 y/ ~2 ]7 xas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may. e3 x" [0 n, b- |
impose liquidation values.. z/ g- u7 M" f2 f8 t
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
! N& j* N. t, G: rAugust, we said a credit shutdown was unlikely – we continue to hold that view.0 w$ ]( c$ r5 ?: e
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension! q& u9 i' g6 b- g/ k. ~
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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d0 c8 Y* N, `/ K# R' C) P) NA look at credit markets
" x% p7 V5 z' g, |, s: o' d3 R Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
) D$ B0 @/ ^& A" t4 aSeptember. Non-financial investment grade is the new safe haven.
}# ?* X) o' Y+ E8 { High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%5 i, A4 }; Z0 k& h$ @
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1$ v, l8 \* T$ H) e! A
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have- ^4 ^, H. L9 t, }& [0 [) O
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade6 q/ Z* q' t1 w; ]; Q5 J
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are" M s C4 Q" R4 o0 x0 @: g
positive for the year-do-date, including high yield.- Q% s+ A M8 v1 q8 @/ T5 b
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble9 s* ^6 N1 u+ r! W
finding financing.
5 _- k% L5 _$ q; R7 @! G; X' R Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
2 m/ Y ~$ H" Q" W2 R$ Ywere subsequently repriced and placed. In the fall, there will be more deals.3 Y! W! |8 h( ?( r, o/ i& `# M/ _1 L8 C6 v
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and$ c4 `4 | I: S) O
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were, u5 M$ d6 T& ]. Z+ g, x
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
4 d1 W6 w, }; y- c2 b" s V! Mbankruptcy, they already have debt financing in place.
$ F6 i7 A/ [% }* [ European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain+ [# b% s' J0 p0 X5 g2 P6 H" p
today.7 P6 m) p! m0 e+ u p5 V- T# s m
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
" J9 L! k) U7 pemerging markets have no problem with funding. |
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