 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
: Q c: ?: X, w- a The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
- f' i. l9 B. _as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may3 X# W. V+ \! N$ S7 ? j% @: E
impose liquidation values.
! D( \/ i5 V; x" J( ]- O In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In$ }) k- j( `2 Y
August, we said a credit shutdown was unlikely – we continue to hold that view.
2 O7 p% a$ |9 E The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension; ]) z) X, Z0 Q' r/ q6 F
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.* w2 ~: o+ P/ v! H2 G% i" W+ Z, _0 D
, l8 R$ m, ]( g& ] m% j' M+ @4 H/ xA look at credit markets- H+ r% l6 n. c2 `" `% Y
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in: [0 e4 D) n: @7 J
September. Non-financial investment grade is the new safe haven.* ]8 b, b- V4 v- }7 ]8 h3 \
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%6 K1 E' r O/ U: M& K7 C
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
% D- X3 ], ?" N( |3 ^billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have, E+ R+ K% G) V% ?7 t$ q: w. E
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade! e0 Q1 d; U6 C3 A7 G8 r% b+ u3 w
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are+ M5 u2 Z; c% c9 E
positive for the year-do-date, including high yield.+ ]8 y' W& S& y$ d, q
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
4 h4 a0 V! j- [& {+ afinding financing.
4 [4 h/ t; V" O* p/ E Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
* i0 |. x, ]3 H* kwere subsequently repriced and placed. In the fall, there will be more deals.
, d# \8 @' n E2 {* S" [ Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
& i/ v1 E; L& v! J3 ]( kis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were; T( u$ H0 X4 s! x8 _3 a% q7 W
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for2 |2 r/ t9 ]+ [" f/ ]4 p
bankruptcy, they already have debt financing in place.3 M: I+ i5 N" q+ Q# U
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
* J( @8 v" y' Q. j( P9 r" ctoday.: x# _7 T( M& q8 {- d; N# o9 W
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in6 D3 v/ r& R# ~0 ^1 O# @
emerging markets have no problem with funding. |
|