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发表于 2011-9-17 13:16
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Current situation
: p7 ^( g; E) w0 S3 a) f( M The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
- \) R5 B$ s0 |# ?as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may4 Y* Y3 u, a, O: q
impose liquidation values.! h4 L5 G7 e9 { P2 i/ A" R
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
$ {( U0 f: n! Y1 a+ @- NAugust, we said a credit shutdown was unlikely – we continue to hold that view.
7 u: p. e* J+ Y; x5 l$ r1 c& { The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension% n/ ^9 b' _9 ]: N
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
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A look at credit markets- Z( R* R9 w$ o$ U' I4 m8 _. t
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
& b5 ]9 n2 t6 ^, X6 W* ^( i# a3 CSeptember. Non-financial investment grade is the new safe haven.
' z* d1 y7 g; P! U High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
6 e( ]7 y; B9 h$ {9 Zthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
# J' b+ ]: U, wbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have8 ^- X$ r& ^! C. ]/ m0 R
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
6 J _" }3 \; P" E! GCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
2 F; q; \& V3 N: T* p1 tpositive for the year-do-date, including high yield.- u6 T0 f% Z( A% t o0 S
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble. `6 k2 W. k* n3 `7 P5 Q
finding financing.. D. D `( m+ z
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they& ?/ G: G: g1 N8 J$ m4 A4 t F
were subsequently repriced and placed. In the fall, there will be more deals.9 o: o' s( }. S
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and6 y" O* S( ]- U( g
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
* p1 i/ n. \$ q, e o, n: R) rgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
) w* w9 U3 R( i+ q+ s7 `bankruptcy, they already have debt financing in place.
, n3 F" e$ [" ?- e; z European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
9 Z4 `; M" x, d8 S( z# R7 Ptoday.# F+ U% {; r7 X' s
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
1 R: b6 `: [& _: w8 W+ n6 Bemerging markets have no problem with funding. |
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