 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation( O3 i2 L# B3 j6 T! j, n$ W0 w* y
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
6 {: d, m& j. [, Fas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may5 @. D+ t& E7 ?
impose liquidation values.
: Y1 w) ?3 N; V4 R3 S o In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In& R) @8 z3 d5 S- W5 x
August, we said a credit shutdown was unlikely – we continue to hold that view.
. I* V$ F' m" Q2 y' N The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension4 C/ a) G5 S( Y0 Y1 z$ n
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.* Z: n2 j5 a% F0 J J. g) ]6 C* i
- L+ d+ ^! P" w/ g) B; a8 uA look at credit markets, L' Y! r* {+ O( d9 s
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in. R2 M. K! D. i) A1 C
September. Non-financial investment grade is the new safe haven.
- z: E/ \5 B1 V7 F# }5 B6 ` High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%* M7 |: F# r w' ~* f7 F9 v+ c/ i
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
) m5 g- [/ ?6 X ?- ?0 hbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have) h3 v3 {* n1 g/ V6 M
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
+ `1 U9 l% f6 w, J9 @CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are1 A% o+ ]1 f6 p H q- v# X% K" w
positive for the year-do-date, including high yield.
0 s( G4 @0 e, r; u$ J Mortgages – There is no funding for new construction, but existing quality properties are having no trouble; ?/ P3 c/ l I- ^
finding financing.) h6 p7 A. }0 H) Y6 }1 h1 {
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they K4 \1 ]+ G" @" d1 |$ F6 j7 S5 ~
were subsequently repriced and placed. In the fall, there will be more deals.
5 w( A- a5 z5 G Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
" t, a2 G: [0 iis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were. n+ x9 d0 M. C" K9 z+ w
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
% G( O6 U, l$ S% x j& Qbankruptcy, they already have debt financing in place.5 }8 {8 Q6 Q: r8 j7 `
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain2 m- m1 o, t6 X
today.
# n T- z8 J! R, ^5 c% Z# \ Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
U1 F" d/ F) x4 I5 ~" L/ remerging markets have no problem with funding. |
|