 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
) B' P1 c; h# S7 [9 B+ W# n; Q The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
* F$ q# M7 j$ j7 Y; Q3 ]; v W/ Las funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
x6 p# K! ]. h& q4 Y4 qimpose liquidation values.: y; K, }' J9 l9 J# v% ]+ I
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
; I' V/ r8 {" j$ e' x3 g) |4 FAugust, we said a credit shutdown was unlikely – we continue to hold that view.
# r: C/ O) W) D% `7 z( F# I The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension% H( } A# g- k! \6 L" P
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets., `8 ?2 J& D- u) \
0 L' E$ n3 j: E7 u' _# _A look at credit markets
2 M# L; {- d3 S C. W7 |3 D Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in# q4 x( w4 o$ U2 y9 B# j
September. Non-financial investment grade is the new safe haven.9 U4 B8 @- E) D% P, _; C4 i
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%2 f% r. T1 u9 s
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1; Q# H! K/ T6 r
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have1 v" S s2 h- M0 A& `
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
+ |9 e9 j! N8 {& r. c) M5 Q/ CCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are/ c, z$ w+ `- |( ~( H! N( r
positive for the year-do-date, including high yield.4 I& [3 g3 t8 g! X; Y! [
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
3 ? |( Z! O4 B/ X n3 G5 u; S) N; ~" qfinding financing.
: j0 V/ o/ U" p/ v F* `" x+ t7 i Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
) i4 k4 c V0 u5 A; {6 E/ L6 Z! dwere subsequently repriced and placed. In the fall, there will be more deals.
! U- N9 ?# d6 {2 U5 o% a Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
1 j" F" L7 q7 R; E8 n0 qis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were. ?8 K5 A. B2 `) O( v5 i
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for I& c* q8 Y* f0 L8 o7 Q( L* P
bankruptcy, they already have debt financing in place.
( p, i0 j# h8 U( H3 I7 q, C European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
) l8 T8 \1 g0 t2 x# j% B) xtoday.
- \0 S1 j4 v& P% O Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
3 o( A: p0 u2 t% C4 N" Gemerging markets have no problem with funding. |
|