 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation7 B! L: m0 H6 k: l# [3 ~/ F
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
# x% f* g% v, j* ~2 I) H" xas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may. j' s4 G& [; B3 S: ^
impose liquidation values.+ E0 ?# z" x) |* W7 Q
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
& G# A5 n& X. i1 ?" T' nAugust, we said a credit shutdown was unlikely – we continue to hold that view.
8 \6 a7 F' T$ ~6 g The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension' u5 Y# z) m0 Y" }; X4 X- B
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
" W* e: u3 r/ g6 A" Q2 N3 s9 A+ w& o3 p9 B! P) y' Q
A look at credit markets
1 _; M! f$ j) M Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
' b& S B x% nSeptember. Non-financial investment grade is the new safe haven.8 n! O. T$ H T- L. G$ O
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%& o# W3 x6 j& ^4 p9 {3 W
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1# _+ h5 u- u. U V
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have _8 r! e/ o/ m+ g0 ~( Y9 e* U
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade8 @( J" x4 A6 o- G+ \
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are4 k- z7 s9 \- R+ z; a
positive for the year-do-date, including high yield.
5 p! x8 N5 K% e! n/ ?- @ Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
1 d9 ^5 J7 I8 T$ h( l3 x/ o$ Vfinding financing. k' m t: m9 J3 F
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they! U7 m" L& l5 d$ L3 _& O8 \- u
were subsequently repriced and placed. In the fall, there will be more deals.
/ \9 H# h7 M2 E+ {$ i2 I Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and- B# o S3 q& E0 r" |( z
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
- f+ C0 ]2 L2 W0 r' I% M' ]going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for) s& }6 y$ J+ j5 `7 v0 W# n
bankruptcy, they already have debt financing in place.
u% ]8 g, o7 E8 C European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain2 \! K+ q$ z5 T. |$ \
today.* I+ l% i+ t+ U$ [5 E
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
3 u& u; J }+ i8 H/ E* femerging markets have no problem with funding. |
|