 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
+ i% x$ a0 C+ F& U/ `3 l' J The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
+ D2 @5 e; h$ `" S! F0 t, ]5 j6 bas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
1 ^5 ^( {2 B+ j' l8 bimpose liquidation values.( X3 P/ i, B/ }' A o, {1 n' B
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
: H* U7 E6 ]& l) j& k" CAugust, we said a credit shutdown was unlikely – we continue to hold that view.
/ s7 [, i; A8 b( W' M The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
- u( G" i0 n+ b8 y3 N$ }9 ?scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
3 Z+ [( Q. n+ D7 j6 o8 i Z8 w2 i) Z1 W/ { i$ `6 C
A look at credit markets# n% f, g9 L, d% r6 e" L
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
: R$ }" e0 g% K+ x% s5 e5 ^+ tSeptember. Non-financial investment grade is the new safe haven.& b. p0 G" K6 Q$ `9 M0 s$ L A
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%# C; o) N" X0 h& }3 ^" {
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1 V- x1 }9 P0 q- h4 \9 W
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
! I4 T3 m: |: \: j i8 |" ~access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade/ _# O, {* M; I7 B( e
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
+ ]* x8 G- S/ D; }% _+ Epositive for the year-do-date, including high yield.
1 d. L" t+ {5 Q/ \ Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
; ~6 O' H& ^8 m$ D; Sfinding financing.
2 Y- a9 h) A, u& P4 H Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
# g2 e. P! }" P' ?% y; Z: Zwere subsequently repriced and placed. In the fall, there will be more deals.
/ O2 P" l' g, Y3 |1 P& S Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and# f/ d7 U( ~: W9 C. a2 v- A
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were! d f# F8 Y: j$ a2 g7 z
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
' K0 I/ h7 \% m6 l1 wbankruptcy, they already have debt financing in place.5 M/ {6 L' g: r( u" I
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
) G5 ~4 Q; B% q2 J6 o$ ?today.5 F- L0 R; A' j& `+ {
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in$ g2 [4 ? V, @% t; m. t- m" t
emerging markets have no problem with funding. |
|