 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation4 a# v5 h" c2 R' a# B
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long/ @1 D' {+ P0 ?2 f [, j
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may# v" |9 m Y$ k& f1 U
impose liquidation values.
2 C' R) K+ T8 l% e9 f; G4 c1 D In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In9 b0 m q) U! ~% o
August, we said a credit shutdown was unlikely – we continue to hold that view.
* {0 w: J7 U, D- S8 ^ The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension. r' T4 A' i+ a& \- l
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
0 c8 Y9 ]+ R' N' H* v9 ~/ B; U
; U- G8 B, @3 R {# OA look at credit markets% V+ f/ v4 w- h: a& V" _
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in% d: d" Z& r6 t
September. Non-financial investment grade is the new safe haven.( p O; `5 s' ?. k# W! H6 \
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
& s* l& [: o3 t E4 I& |then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $10 p+ j# ^# m) C+ g5 }' f9 }
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
8 r( ?" \6 b7 b( Xaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
: V0 ~& Y* O5 J; qCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are) t' f0 {! w$ H% v$ ~
positive for the year-do-date, including high yield.
, e" B5 t$ h' e% k! t5 ` Mortgages – There is no funding for new construction, but existing quality properties are having no trouble3 p6 G+ A1 d6 d$ P% }) K1 {6 {
finding financing.
8 G* D& V4 [0 e: K Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
8 F+ d- F8 [2 \* Gwere subsequently repriced and placed. In the fall, there will be more deals.
M1 l: y2 j- f' Z Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
" U; g( {2 S& u3 C: n/ Nis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were' A7 { a5 J/ @1 f) |
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
: Z( W* P$ {. Qbankruptcy, they already have debt financing in place.
* h! p9 B+ E/ l- {9 t) o European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
% K& C" K3 `! y6 w, W- J+ C: Ntoday.
# w0 S; O; i4 \9 R Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in; I! Q7 S! F- `0 p' _) k
emerging markets have no problem with funding. |
|