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发表于 2011-9-17 13:16
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Current situation
0 n1 @7 z" [5 v: M- f6 f: v$ ` The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
( w% K. ?7 Y4 L4 ?* nas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may* W% w8 y% t0 t; l
impose liquidation values.6 M' g3 K; G2 Z% ^! r m
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In4 ~) A$ j. {8 \. `6 [! Z
August, we said a credit shutdown was unlikely – we continue to hold that view.
- @% ?% e2 p7 d+ P- S- c The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
* O% t' L# U& f4 `% j" \) x/ m tscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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( w# `, i, R2 sA look at credit markets
6 i5 g6 M. c b3 f7 ]8 U Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in+ d& B Z; f" V8 \8 J# a2 F' j
September. Non-financial investment grade is the new safe haven.
1 [+ _) F& z& g5 G; @ High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%( l: b' z* c2 B2 z+ Z7 t2 ?. T! w
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1( m2 r6 {. W% r& C( [
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have, `- E1 _ p: Q( j' B, N
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
4 s3 G* A1 q+ F1 j9 f) ~4 ?CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are K8 t1 j% w% k- \3 |0 j
positive for the year-do-date, including high yield.# [( |. K c! _9 e
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
* X+ G( G- ^% i: D( E' @. J% H* G0 Zfinding financing.; H. P7 h! c4 V& ^0 ~, g& ~
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they* s+ ?7 H" Q# e, g
were subsequently repriced and placed. In the fall, there will be more deals.. f0 c: i2 ^+ W# ^% ^
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
3 U1 r* Q4 f4 ^& Tis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
, p7 Z4 J' f1 h1 d( h2 ngoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
; I% r& J$ ?8 z( Vbankruptcy, they already have debt financing in place.& ?. o q% L2 L- p" j4 ~% g' H" |0 q
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain1 \; ]* y2 f% N: L
today.- `; y" |1 ^- e7 ]0 J2 G
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
# u/ c. ^+ W/ o3 F5 \! eemerging markets have no problem with funding. |
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