 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
. j( W" k& t: B$ {. R9 U, W9 i; k4 D( ] The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long' n8 f h3 n- Q. m
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may% i! D& r$ T+ X/ {+ S U" c( p
impose liquidation values.
3 j; b" R% N! ~! X In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In2 E/ W% |2 i0 l9 Y- r
August, we said a credit shutdown was unlikely – we continue to hold that view.
7 X( F9 o: I4 C5 ~/ i6 M4 q k. c The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
, l. P$ q6 R9 x. E1 |6 x3 `9 j. xscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
2 h# V' h3 q( X8 X* _
: s: C7 F: @+ e$ n5 _6 u! g( B7 hA look at credit markets( r7 O3 g- Y% j. O3 W1 Q
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in) j7 f `9 |2 T1 w
September. Non-financial investment grade is the new safe haven.
, H) S* F( {. N% ?, N High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
6 N c" O! \4 J C: zthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
. b3 p4 K) U$ `( kbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
* W( N/ Z: R9 W+ w7 K3 {access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
; Q: y" c1 w% h: RCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are( r2 {3 r' e/ e! h; c9 s q
positive for the year-do-date, including high yield.& W G2 O3 ~5 b/ a7 S* ?6 c
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
. R7 w: F X9 b1 o9 ~! ^, T9 Hfinding financing.
! ]6 q7 K& j4 P5 s. O' u) x( ~ Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
+ w" v# p$ o& C" lwere subsequently repriced and placed. In the fall, there will be more deals.( `/ M3 ]+ w5 }- Z3 }+ U
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and* q, j" h* m5 R, y, _ M
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
, |+ _- a! B! l5 b4 Bgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for+ s3 x+ K3 @! \! f
bankruptcy, they already have debt financing in place.' q+ i# Q- A- M
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain6 |" B% M4 w8 C' f2 o7 O& X o4 |
today.. R$ M) }; L; h; W$ a6 U" M# ?* m I) p
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
* N0 c N+ ~1 ` O8 X {emerging markets have no problem with funding. |
|