 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation( ?2 w/ ]$ x8 \- l1 l
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
. {9 S5 T: P- Z/ X5 j) ~as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may/ o, R) F6 R s6 l
impose liquidation values.! Y; k* ~4 h- [8 m$ V
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
8 D, I }/ X+ j& ~7 r4 Q: NAugust, we said a credit shutdown was unlikely – we continue to hold that view.. Q7 G3 o2 X5 ^/ `; `, q
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
! m2 t a+ x% n9 N: T. @% Bscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.0 }# U! }& h; P/ X$ f
% M6 b9 d; H# m P
A look at credit markets
- o/ ^7 F* {. ?/ X4 E Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
, L! }& J7 _; ` t; I9 A J$ OSeptember. Non-financial investment grade is the new safe haven./ }( z- B$ w$ K t3 ~: O2 L# ?2 ?0 x
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%( W( N( F" P$ a6 l' Q$ X6 n' n
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
8 G3 \ n: f$ }! A6 L* ?billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have$ L9 q) \/ Y& N
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
7 P7 u) V; D( R) ?! K# C0 VCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are4 g# M4 f) ^4 m4 Q- B) N
positive for the year-do-date, including high yield.
% [9 O x: ^( X* |' [" _' D2 l7 @ Mortgages – There is no funding for new construction, but existing quality properties are having no trouble0 d, @ [; G, n5 u8 S2 ~# \0 O
finding financing./ G$ J$ z" X( t5 A8 Z1 W: Q& p
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they+ ^3 N2 {% u+ k& r
were subsequently repriced and placed. In the fall, there will be more deals.( Y- t" Q& `. P' |% ~" a1 u
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
+ k7 A# a9 }1 k9 Bis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
. ?! j5 a( j4 P3 ~6 Ygoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
, L+ t, Q1 P! w S5 k5 [, jbankruptcy, they already have debt financing in place.
3 e: M! i: A) j, Y3 V* w European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
2 }4 j5 q4 O* x1 s: ntoday., F- x: O! i6 F+ p
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in4 r2 }) t9 \3 j: D
emerging markets have no problem with funding. |
|