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发表于 2011-9-17 13:16
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Current situation
. \& ~! a( t- `4 A The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
; c0 Y. |: r5 d8 z& }as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may4 f4 a9 s P; W
impose liquidation values.
4 g7 x; p3 U/ S0 ^" R In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
- [7 P* o( v7 H7 F& C' A1 tAugust, we said a credit shutdown was unlikely – we continue to hold that view.
; U; f: R5 ~* ?) D1 p The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension; o5 y; N. d3 R8 X( d$ n! g: j4 u
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.. h8 W/ R+ I" e& l2 l0 T% m
$ p( e$ c0 \& n: E3 M2 d1 D f* WA look at credit markets: j( X2 C0 |3 G
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
7 b9 q7 Z6 q% m/ |/ m f: Y/ ySeptember. Non-financial investment grade is the new safe haven.
# h1 w& j0 M+ `' `: x High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%7 M- M9 ?1 Y' K& T3 W
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1$ \+ p% M- ?* q+ s" U$ Q
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have- o) }* t$ p( r) U- l
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade( D: E( O2 U. v# \+ f
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are2 J) A* l* m j) Y, T
positive for the year-do-date, including high yield.
& g6 ]7 ^% F# _; f Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
' R5 F5 j* j$ tfinding financing.2 v" v8 U) v" s4 d# |
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they" G2 E* E# D2 O/ A& I! \. L
were subsequently repriced and placed. In the fall, there will be more deals.3 F- D6 V1 q+ {5 {
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
/ a1 z8 c& f+ eis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
& i7 P. Q" `7 f$ }going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
9 h1 J0 ~6 [; {/ l0 ibankruptcy, they already have debt financing in place.2 U( v- O7 \6 G5 c8 I
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain2 ^0 Y& M; X" A T& j7 ?& U0 p
today.
V$ t! r4 z; x" A7 B) X) U- U Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
: U1 v6 `" d" }' y( X; x, Vemerging markets have no problem with funding. |
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