 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation7 I- U U3 ?% r- P. p5 g
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
1 N/ P, ?! C! w! F2 I- Yas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may! a& m [% ?* E* R' v4 P5 a8 f- L
impose liquidation values.9 h% R0 z$ v' a$ D/ {( g
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
1 i' j4 n# a+ E/ H* Y% e) O5 |0 Z8 gAugust, we said a credit shutdown was unlikely – we continue to hold that view.+ i' s) `9 C4 `' ]6 G
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension! F s* I- y" }8 f3 ?: r0 A
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.7 o4 o# d# M: K+ I( {* A% k% ?
* W% b8 L M, a9 b" P5 g% ZA look at credit markets" u2 b I7 Y! l' h. o$ @
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
2 {) }* N8 N {. Y2 a& ~September. Non-financial investment grade is the new safe haven.
; w4 Y: x7 C* O8 I. \2 W High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
+ n B+ R9 k& L7 ~# U, g7 Rthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
6 R/ {5 M( F, y3 T2 I( I, |+ j5 rbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
7 S+ Z' u# J J7 i4 oaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
$ Y& P8 g* M/ @" u* D7 fCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are6 l+ S+ @9 _! ?' j+ M
positive for the year-do-date, including high yield.
) a. @- b1 p" @6 h! B, M Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
# F8 b- T, I0 c! u. qfinding financing.
9 K* j+ d- ]- S- J( S; x Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
- S/ m! h' ?& Swere subsequently repriced and placed. In the fall, there will be more deals.7 C6 `8 H& Y" O& V
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
" ~: @8 f# S/ M1 l7 {is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were6 Z# C/ k! g2 M: @ X9 q
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for- T( c' ~( J w3 v& O9 ~: [6 y6 F9 Y
bankruptcy, they already have debt financing in place.5 X& L( T7 h/ \4 y W z
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
9 b: @$ b0 p5 h4 r' }6 i- ^today.9 n9 J( h2 U" W$ }4 h: x0 B7 ]( F
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in( e9 `6 O+ f0 f) E
emerging markets have no problem with funding. |
|