 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation) m! m7 z% M0 @2 D) o4 {; j: {
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
5 ]2 W: h. S" Q( @' Has funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may4 b* T: V7 ~* P2 \( B
impose liquidation values.3 F% E7 H6 m/ ?; j
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
6 t) f5 _, d0 D3 K2 nAugust, we said a credit shutdown was unlikely – we continue to hold that view.- d) n* F: p0 f# c
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension2 B& b$ `% z0 m5 B% i
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.+ K' |; F6 O: q, _& U! i" R
6 J% i1 a; ]" M! M* |5 @* S9 p
A look at credit markets
9 A3 z% t/ K5 A0 M) t Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
# O% p* ^, h9 ?" wSeptember. Non-financial investment grade is the new safe haven.* ~. A/ t/ T+ z4 T3 b
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
( x. \# i+ K+ q, D P! Gthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
+ W1 b0 D$ w4 e+ a Ybillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
5 |7 m6 r6 }/ l2 u6 Faccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade) K, S4 K# z( g% N* M
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
& O: _8 V; p' ]! Fpositive for the year-do-date, including high yield.+ C- p0 r1 [' L d: z+ B* t4 q
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
* Z; i( Y" k& X `0 d) [finding financing.
+ X# J5 w/ F" o: q! B3 \& t9 m+ D Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they6 i0 t# i& F4 k; U' U
were subsequently repriced and placed. In the fall, there will be more deals.
. o# o+ V( r, k. L/ q Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and9 N; T9 G7 @6 Z; c3 x
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were& M' b: ]+ h) C j: `; C
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
6 W4 L/ X) z% h: Y. _bankruptcy, they already have debt financing in place.3 _* q; O/ e( R! L/ W
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
* O7 o/ P* J+ V+ ]today./ \ G, A7 t$ H/ u
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in: f+ w0 u( O0 l$ t
emerging markets have no problem with funding. |
|