 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
* u) M- q, V% f5 ^! w8 F The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long7 C2 C z6 d4 _5 B+ H
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
+ K- v, }5 _$ w5 [+ } q4 Rimpose liquidation values., ~" _ n- ?7 I% A
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
$ T8 ^9 X% c: w; r& P6 SAugust, we said a credit shutdown was unlikely – we continue to hold that view.
! ?6 g/ }% y5 W8 C# R0 m+ [: X1 ^% T0 i The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
$ k; A: W) t& z+ I; O+ a, T- l6 Z1 _scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
- A4 _1 y6 H0 M1 c% i1 z' i8 K3 C0 R
9 y4 W1 H A6 XA look at credit markets
9 F. k i7 z% @" ]; b2 G Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
: V0 P( s6 X; u9 x8 g$ y+ I+ D* ySeptember. Non-financial investment grade is the new safe haven.$ |- P! |: M! @& r% u2 N0 Y& `6 n- v
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
( O+ a5 ^9 v9 H4 U! ~then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
& d! E, V7 e6 V [billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
0 j0 D: a" m& u, G3 Waccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade" s4 c v- I; N# Y _. u; m
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are# N8 Q, J8 O/ g4 O! M9 X3 `& a) a
positive for the year-do-date, including high yield.. J5 F& A; S5 e. r) A. B1 I3 m. m
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble" u7 C! _* Y1 e& r( B3 u7 ~
finding financing.4 s4 Y. `2 a5 T5 P5 a% A
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they2 y- @) s& n: a4 [
were subsequently repriced and placed. In the fall, there will be more deals.
9 p. i y* x; w1 u+ W5 W Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and7 x9 I9 L- R! I1 Y8 f
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were; a) C* Y5 @4 M
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for) T( K9 _6 [! j7 e! d3 F& {
bankruptcy, they already have debt financing in place.3 D( k0 S; G5 l: A
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
2 s: L7 m+ ?! V9 s, Mtoday. v$ C/ r U; k' T) U3 C9 P& E
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
0 g' v A( Q0 s7 Bemerging markets have no problem with funding. |
|