 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation+ C* e' N7 p$ E7 \1 ~% T1 I9 X
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long. w' [. t2 f# a) ]) X
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may, p$ z3 J4 q( b
impose liquidation values.9 Z, ^' W8 c6 k9 U! J) g2 J
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In1 H2 b$ v2 K) N; h. g }6 S9 h+ }
August, we said a credit shutdown was unlikely – we continue to hold that view./ Z2 q" Y* a$ U8 G
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension: p8 ]' H1 I, f! a
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.3 R! m: G# @/ N; d( g1 \! M0 C: R
2 Y9 `8 I8 O1 qA look at credit markets
+ _ B. q- P: x Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
9 ` E3 M0 o( Z! E* _( O- CSeptember. Non-financial investment grade is the new safe haven./ y7 D0 V8 R# u4 T- P# I* A, K) f
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
. W9 M, k o8 b3 V( `+ kthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
, {7 @& V6 Z% Y7 R5 D8 {0 ebillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
; }7 c6 E! l/ ~# q) @; P" yaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
5 d% r# I b% w; p6 KCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
% w$ H1 v5 Z8 U% opositive for the year-do-date, including high yield.% Q( j# H% L1 ?4 g, s. t
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble6 B9 L' K1 t+ M0 B0 I% Y* O
finding financing.
# r8 f- N' }1 F& _1 z/ B+ l Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
+ b8 v7 K/ O$ n6 Ywere subsequently repriced and placed. In the fall, there will be more deals.6 y' m% X! S: G6 a6 \
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and5 }- b: E. @, g, G, C" l' ]
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
N1 o6 \$ T) R5 cgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
% B# {* V7 u# f$ l6 c8 x6 Bbankruptcy, they already have debt financing in place.
2 s9 n$ p, I" {& j' J7 X5 C European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain4 s2 Z% E9 N% c, ]3 g
today.
- }6 E& s; z3 Y# a5 K Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
& q# t3 z s! g" _/ Qemerging markets have no problem with funding. |
|