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发表于 2011-9-17 13:16
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Current situation
+ S7 j$ }# i" u The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
. m. G9 D, C( E3 ^: v* A3 Zas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
" j3 Y8 M- A8 g+ i4 E# j6 T! Y) Simpose liquidation values." V& D& U2 |9 V$ j3 U: D' H
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In n+ B9 ]/ b- S! f+ h6 C
August, we said a credit shutdown was unlikely – we continue to hold that view.
5 d* r: v6 u5 L3 N# V' A' f! B. a The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
6 @9 D9 u# ~# q" Iscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets
+ p3 b3 z- u. x H, D; u$ V5 c Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in: q4 I5 ?, @2 U# v
September. Non-financial investment grade is the new safe haven.' W m% [' B3 D e8 C0 S
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
4 {: g @2 \2 l: i4 c9 W1 Gthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1$ u, @ v; ~: R2 V/ ~8 G
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
; v, N" N& G/ U- haccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade) B3 m* a& s% P( b
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are' O, h6 s; C' ]
positive for the year-do-date, including high yield.
( R: R' r2 ^% n0 K5 s8 _: i' ? Mortgages – There is no funding for new construction, but existing quality properties are having no trouble5 ?- X5 Q+ U9 N; h
finding financing.
5 H8 N$ s3 } P5 M$ i. c% G Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they* G f, _, r' R1 Z% [0 A
were subsequently repriced and placed. In the fall, there will be more deals.
! w& N; \0 c4 D& G" t9 s7 D( p Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
( A4 s" n, c6 z; x/ A% mis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were9 }6 f/ p @9 z/ o
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for9 v# m) O4 |3 _$ B% b! h1 W8 P
bankruptcy, they already have debt financing in place.
1 d. E$ _2 a& q! N+ l' }" e* k' ^ X European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain4 j8 B8 c3 t( P' s
today.
8 V: E7 p/ M3 e+ Q Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in. H, N) }7 K; d$ T" K6 u( [
emerging markets have no problem with funding. |
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