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发表于 2011-9-17 13:16
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Current situation
: ?' P& C0 u5 e) I% i The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
3 \& L. o& Y2 {) H9 b+ [; Vas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
) ], j, M1 R, f& v/ }: Himpose liquidation values.
) m3 X# q" P; a+ e) ?$ T S! x: h In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
2 o! p9 t2 e# X: B2 N Y( }August, we said a credit shutdown was unlikely – we continue to hold that view.8 c- v, n5 x5 E6 v8 F& U! v
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension1 G3 |/ ^5 G9 u6 L
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.4 L" z. Q0 l J) ^' v( ~
3 z0 T* z1 b8 o' P9 LA look at credit markets
% O7 h, ?9 r" V- _9 G5 E' y Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in' E/ k2 u' g* d, j# d, }
September. Non-financial investment grade is the new safe haven.
8 M5 V$ T$ F* X& S$ m3 |4 D High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
4 Y" L# s& |+ o) ?6 G/ y: O$ J# x: Pthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $13 N& r* |6 ]4 u% Z
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
4 a& p G( w' a3 e* ^- `$ \access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
9 ~) y. j7 U5 u) a( Q2 l& @CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
5 s' _# y% x- t6 [6 Lpositive for the year-do-date, including high yield.% B( S! |( p, v( |6 F( {4 }
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
1 m9 j6 ^+ z) v" [. x0 X8 lfinding financing.
3 j6 d0 T Z1 R3 A" l* h9 _! D& h# I Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
/ S2 q( T2 \+ Z" {+ R% `; H$ mwere subsequently repriced and placed. In the fall, there will be more deals.
4 C2 p' F( I* F/ G. o8 O+ W1 m5 Z: p4 } Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and% T2 e5 f2 }9 s, a3 k0 `
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
: v, X8 V! ?, F1 Bgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
% ~( P% e) u7 N. A [/ A- Y: cbankruptcy, they already have debt financing in place.3 e& y6 q+ [9 ~2 {; O
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain: f1 U0 g; J- J) h+ h
today.
/ m8 o/ m) I2 p7 h& z Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
# a4 F Y+ _8 ?1 L% y# ~1 p; }* bemerging markets have no problem with funding. |
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