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发表于 2011-9-17 13:16
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Current situation
$ G6 m3 \, T& J4 G/ N7 D4 T$ i3 z The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
" D2 s L4 z/ V6 Ras funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
( S) a# Z3 F3 r- e3 nimpose liquidation values.
! t z, v! ?3 V* h; S: | f: F2 L: B% y In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
" p m& w8 R; \; n! xAugust, we said a credit shutdown was unlikely – we continue to hold that view.
" i8 Z6 t$ F L. l' _ The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension' W* [, n# s8 q* k5 |' `' q* P ?
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.# I: Y9 q. j( K
) y" ]7 |" h0 o/ M' C) N; ]7 kA look at credit markets# w+ e$ z$ r6 O6 I+ v* z
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
7 O! A" i8 I# H+ {6 [! r2 }, F9 o. sSeptember. Non-financial investment grade is the new safe haven.: L* N) R* }3 P. I
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
" B1 g d+ G% ]* k3 y: Rthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1 b/ s( \. G( v
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
. l l4 Y; j* L: K- D* y4 z6 ]& a' Aaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
$ j& Q: W4 K) R" w, y0 XCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are) j9 z' q7 q4 V1 L: q
positive for the year-do-date, including high yield.
( o3 ~8 @3 l7 F0 e9 d0 j8 F% h8 r; \ Mortgages – There is no funding for new construction, but existing quality properties are having no trouble4 g9 {3 i! i3 d& m, h
finding financing.
' m( F; K* u! T1 E( m. E Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they5 A0 j: b \' ^, _
were subsequently repriced and placed. In the fall, there will be more deals.% p4 T4 M; [" H. F Y1 c$ Z
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
2 V1 y I% Q) d" N" y$ c( b C1 h6 nis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were6 n8 ^7 T0 o1 i
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for- l' v- Y* u `" \& S6 r
bankruptcy, they already have debt financing in place.9 |/ }! `; f1 q
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain% E% I0 h$ I0 c
today." h' H7 }5 a5 Z8 _% E* ?1 E1 F/ _* S; B
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
( j. w' `0 g) j/ t, G' s5 demerging markets have no problem with funding. |
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