 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation4 q- E. n: F9 m& V: |# ]) e) N
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
4 m1 @, M' | ~# _9 N5 }9 p- N; vas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may* U" K [, Y$ e M7 C6 U
impose liquidation values.
) Y3 D: M% D. A0 U# m" \# {% M In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
! P% F V6 w1 `August, we said a credit shutdown was unlikely – we continue to hold that view.
$ X2 t3 b( d# _7 X( D- w$ R& N- _ The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension9 I0 t1 b. E1 g
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
! p0 S( a6 S6 D( ^! _/ Z
9 I& h: |9 ], }8 jA look at credit markets
! b$ [; n7 _2 b Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
+ X& Z+ Y p9 c3 [+ }% DSeptember. Non-financial investment grade is the new safe haven.$ c' v% ]1 U6 z, {- w) \0 g
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
7 Y& j) {( j( d: ethen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1/ s, d, n9 g* N6 ^' H# i$ y
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
0 y9 `# i# b1 [* Taccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
: N' k# R( V& E M5 t& bCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are- S2 p+ V7 `4 [. S; S
positive for the year-do-date, including high yield. d9 d2 c, p, L9 z$ _* P9 ]* E: c
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
; ]5 l( U' A$ y5 P$ V$ ~finding financing.0 R7 P: k7 } U8 u& B
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
$ O+ E" H. ]; G$ ~were subsequently repriced and placed. In the fall, there will be more deals.
' c. I, R" H$ W6 j- j; n9 W Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
5 i! T, K; t) {8 L, G5 Sis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were% i9 K. P1 i2 e' {1 z8 S3 q
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
' W$ `- k5 h5 y _7 c7 ^, Jbankruptcy, they already have debt financing in place.: e; [" K8 }2 E" U- F8 K* h5 `* y
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain) _8 h7 `; N( e( I- g. n
today.
# Y5 Q% P; `7 R/ C( p6 j Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
) O' T* X8 H1 K& Y hemerging markets have no problem with funding. |
|