 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
! n# A; M5 ~+ u/ C The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long8 s: E* d9 m. K) R4 L% I& Q
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
8 G8 v% `6 G. _$ F2 timpose liquidation values.+ R" o2 U I N$ h1 U
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
3 k$ Z- P; j6 k* N' R& F; S4 I1 xAugust, we said a credit shutdown was unlikely – we continue to hold that view.' Y+ W$ q. H3 G+ o
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
) T5 w$ D6 h" o9 K; sscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
) z7 k3 P7 ?4 A- i4 f8 s; x& r# r+ G, ?2 [2 c7 G2 |
A look at credit markets
_/ v# K4 n' O3 ~3 C2 A6 B Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in* G9 B0 s& u6 `& T: a9 D# s
September. Non-financial investment grade is the new safe haven.
; X# j- A1 n1 c1 ^1 O High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
6 U; }: V z2 M# C2 `then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1, l+ B3 }* @" Z! l0 f$ q" f
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
( u$ O/ g% g* W& D' Vaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade" y# a3 y$ Q" ?4 J+ j D% h$ I$ s# w
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
: n, ~1 M4 g% p, F/ Tpositive for the year-do-date, including high yield.
1 J5 m; j5 K: S# |9 L9 F/ B, K Mortgages – There is no funding for new construction, but existing quality properties are having no trouble" b, X2 A u; i& @4 p
finding financing.# i" B% ^, Z% y4 @
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
1 C' n. v4 q8 h: W. d2 N A2 Swere subsequently repriced and placed. In the fall, there will be more deals.
" ~! L. Q, m/ }) b# ^" \ Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
/ ^0 G/ o2 W* [! vis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
/ P- |0 [' |8 @6 S2 V: {going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for5 Q; K4 C7 M/ Q3 i: }, P: _4 f
bankruptcy, they already have debt financing in place.
7 }" o! k1 ~ S* K) l European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain# y0 l8 s4 B6 x/ q: T+ E: z; }; `" M
today.+ _6 p. P3 r- S3 C3 x, v
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
8 s+ s+ u2 z2 E( a% B9 \emerging markets have no problem with funding. |
|