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发表于 2011-9-17 13:16
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Current situation
( ? t$ ^$ _, }, q8 c The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
% H, Z# t9 _! s0 [: u2 _% Cas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
7 A" ^" I$ ^9 A" J$ Z: ~$ cimpose liquidation values.
9 @' h3 Q9 r2 Q o. P In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
6 X1 i) b) ]# E5 r* \& Y: FAugust, we said a credit shutdown was unlikely – we continue to hold that view.) n# ^5 W) P7 ] K. k$ u2 o& c) K( y- Z
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension/ E1 N) \$ f: `
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.2 y: q. v3 v4 Y% b. R' w$ w
. K) m$ U2 _! S$ T+ \A look at credit markets
6 Z- M& U( p. d2 [* _ Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
- r% z* f- x, X1 \$ C, b, QSeptember. Non-financial investment grade is the new safe haven.
: S4 B; q/ @' n3 w# r, c1 y; y High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%6 _# E4 W/ Z- F: e2 A
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
+ \( l+ `0 Q- m" r% @7 @9 E ^% Dbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have+ ~- c g' w% k- t2 Y) P4 ^; I
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
( p5 j4 C) W J! ]: BCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
9 `0 w" i) c5 V! }; A0 A2 epositive for the year-do-date, including high yield.( J7 m0 i0 m7 Y2 E8 R' d3 J7 K
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble( z6 Y1 \ ?; M, V
finding financing.' ]$ }' L( K m/ \# g1 _! v
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
+ P6 y; c% e. e s: Rwere subsequently repriced and placed. In the fall, there will be more deals.
- d5 z* L* J8 k Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
8 C7 n0 x! E. S& X& e8 z' Eis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
, y: m+ J0 k/ X) g2 igoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for& B1 w$ e( X6 u* c
bankruptcy, they already have debt financing in place.
L' J0 J# J' Q6 I European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
0 q# @9 s% y- A, rtoday.
* M% {: {) L0 j6 Y0 B9 T8 @ Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in" R! X8 ]6 J5 a
emerging markets have no problem with funding. |
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