 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation# r* w3 m/ k* I z7 i" a% L
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long/ m# B4 W# h1 r5 E
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
7 i! }0 a8 N5 d( E- j, Oimpose liquidation values.8 n k4 d! g1 D% e* i: y
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In/ a% c; {- r' B6 L# |- k, m- ~
August, we said a credit shutdown was unlikely – we continue to hold that view.! ]8 b7 x" m1 I' o3 j7 A7 j( b2 k3 G
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
v5 v7 k: E4 d7 L" Q) lscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.; U5 e7 k0 h$ A; G0 Y% ~
2 {0 @& A* T8 `: P( i) f" }
A look at credit markets
/ G( x$ I; @. t( N" w* {% m Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
! m* g1 D( L/ h! }$ m% L, l+ rSeptember. Non-financial investment grade is the new safe haven.
8 p! t* n/ L9 e) o High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%( y9 i, g9 \4 X# z
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1$ w, K, D+ e% B% ~- {. |
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
* P4 j5 {; g Naccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
* v7 W) Y- z: p I3 r& iCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
. }8 s/ w; C$ [; p4 qpositive for the year-do-date, including high yield.
! i4 Q1 |& s# n' Q' b0 N$ S Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
" ]$ H$ `, G3 v! Ifinding financing.
4 A+ j, A: d+ f" I( L+ A) _ Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
7 R, B# o" |5 hwere subsequently repriced and placed. In the fall, there will be more deals.
3 v d' u) i6 N, A; D Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
9 P# v7 M& `7 x3 {is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
" Q/ V6 N1 n# X* O$ cgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for) ]; i, B. ]. l! `# _
bankruptcy, they already have debt financing in place.% T; W0 q5 R" D& h9 I
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain0 N Q! u4 r+ S. x
today.' h: u, X- V7 s
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in4 V: \2 g2 f4 g+ p( Z3 a5 G
emerging markets have no problem with funding. |
|