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发表于 2011-9-17 13:16
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Current situation9 d2 Z7 ?: z6 } Y
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long- H# r8 E% B' V5 t( O$ b$ R
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
F, W# m' L$ A' C& @7 x$ Yimpose liquidation values.
2 f- q$ r1 V! @- v+ R! j- F In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
' o! E! J. h4 j0 V7 y, B5 R; TAugust, we said a credit shutdown was unlikely – we continue to hold that view.: g( P0 g$ u4 L: G# A* \* _
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension2 q9 g# y, O% Z. }6 v
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets. S# [1 B. S* y& r
: B8 i g Z% Q) n0 ~A look at credit markets3 U) i F J3 p& d# Z
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in; t9 Z4 b* i; i% n
September. Non-financial investment grade is the new safe haven.! x Q: r v) c
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
/ B9 n$ O3 \7 l% mthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1$ ^$ ~+ e$ {4 s
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
' b2 X1 i/ G) n% j% j. ?1 w/ p; Qaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade" R& \, i/ S7 O) y4 y
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are5 Q7 n9 F+ N1 q8 q
positive for the year-do-date, including high yield. |0 ?: X$ O0 k
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
2 x6 c$ [; m0 Afinding financing.
) y1 c" V. Q5 e Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they. m: X" c( m# i: b( z F4 _, d
were subsequently repriced and placed. In the fall, there will be more deals.* g& c8 q k, Y+ i: @+ A
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and! ]8 ?+ Q+ H8 `; ?3 q5 O5 S
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
& A% C$ S3 _' c( H) M% G" Q' Lgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for$ J# Q8 A' J! p
bankruptcy, they already have debt financing in place.
8 G" O. _) `$ O4 s' C0 o European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
! d5 W# l1 |7 A3 A/ V# Etoday.) k6 s: ^, g" b4 \
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
4 Q9 ]5 r& B+ U# Q2 {5 eemerging markets have no problem with funding. |
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