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发表于 2011-9-17 13:16
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Current situation8 S9 B; M; @% ?+ u5 v) ?
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
% l1 g: i; g7 Z: Has funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
) x4 Y! c6 \" p; Fimpose liquidation values.+ I% V, g, W! t7 ?9 q% P
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In8 [, y T: E: W' T
August, we said a credit shutdown was unlikely – we continue to hold that view.) S0 e9 j* e' K! f- M8 H) L
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
3 f _; m. `0 X" C" [! pscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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- U: A3 o. b$ lA look at credit markets
( M1 x3 N6 V) t/ D W/ z3 W9 P+ F! O Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
( Z/ X# u* `9 ^: `% _September. Non-financial investment grade is the new safe haven.
0 G/ M* F, F% P4 m, J) K* X High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7% w# ]& X5 P1 Y0 y# ]
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
. G. @ T- ]4 W" H% a7 ]billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
: h$ O3 u9 x0 ]7 t* G" p# baccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
8 S0 S& i* ~ ` [+ g) @CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are+ A) J/ `' o+ ?+ F) s$ L1 p
positive for the year-do-date, including high yield.
F# X8 _7 |5 L/ a Mortgages – There is no funding for new construction, but existing quality properties are having no trouble4 O* s) z7 z d+ ^ i- O
finding financing.
g! L. h. D/ h, @/ ?9 Q0 l3 w Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they9 t" H2 y7 M+ n; O, k
were subsequently repriced and placed. In the fall, there will be more deals.
% T/ a% q" H& Q$ L% W F% u Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and3 x1 \# f4 X1 ]! }! a- u
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were+ e+ m$ [% N8 D0 B8 n9 u
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
) P; f) v. Z1 }- [6 p, P; Ubankruptcy, they already have debt financing in place.
/ [* F3 u+ H8 Q- i( J: Y* \ European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
* i! t' {' B" F& F3 gtoday.2 h1 u- x5 K1 a' X; V
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in3 R1 [; D+ f+ w, j7 h
emerging markets have no problem with funding. |
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