 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 e/ q8 p/ v1 T* V9 X' ? The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
8 L- V+ ?" @, ?& m7 qas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may `4 R. r7 q4 R8 Z! u' u
impose liquidation values.& f% G' S2 ^4 l" _0 U
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In! r& c- z/ z5 s2 Y: o8 I
August, we said a credit shutdown was unlikely – we continue to hold that view. A* p8 T$ y. E
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension# S7 |0 } |$ Z9 u5 k+ C& v* f
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.5 a( t( J/ O6 [7 K% H
5 a! Q- G( ]9 ~# O* K
A look at credit markets7 e3 `; e( f' W5 O* A
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
1 m0 Z2 G5 e" M3 oSeptember. Non-financial investment grade is the new safe haven.
* u$ @# T% c9 [) A High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%. H: ]1 z! k& f' E+ v' p5 N
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $18 ^1 @' N) ?2 c8 e- u# z3 g" Z
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have% u' _0 K9 a# X2 E h
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
# H8 S6 Q( V' D1 f, _CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are' Y6 d1 p9 q8 d/ W+ [. |8 d( m
positive for the year-do-date, including high yield.
6 Q4 L, B2 N, t# I' I Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
; ]' D# G! j7 G1 Ffinding financing.0 a( O$ a% x$ J+ H6 t6 l) d6 X! N
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
0 F6 q% D4 H& T. {. a' uwere subsequently repriced and placed. In the fall, there will be more deals.& f5 P: u) x5 Y. Y7 @. c' Y+ j
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and, G( X' Y: v5 b! S+ ?: O: S
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were) X2 F, D E: ^) y8 t! X
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for/ d( t" Z9 \5 _- m" B0 f
bankruptcy, they already have debt financing in place.
) w$ w7 z* {8 i0 N European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain1 M' t$ ^! c) Z' B) Z- P
today.+ _! N* n5 o0 g5 B6 x
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in9 N. t: d: @6 T
emerging markets have no problem with funding. |
|