 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
5 G8 g2 ~$ R( N7 @, f1 w- g2 D9 R The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long: q! h( N7 K% x8 h0 D
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may( \( b, s# j* h& @0 G# m# x" v
impose liquidation values.
* M) j9 }/ y# V, u% U. @* Q In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
2 H) _4 o; o' r: AAugust, we said a credit shutdown was unlikely – we continue to hold that view.& J2 D. j, J) \4 D# l) `( K4 r: O6 q! M) _
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension. v" Y" e3 o/ b! I. |" j7 h3 A2 d
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
3 a7 t/ @/ {- q
1 r8 T6 A! f; J0 r8 b% i, RA look at credit markets( o# i( h ]; e6 h
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
, n) N$ E4 z1 \. c3 q; nSeptember. Non-financial investment grade is the new safe haven.
- a- t9 A3 }+ C High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
/ k2 `! P5 R# {# z0 v8 Lthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
5 Z$ p! C5 Y4 a4 y& v$ h- C# rbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have: s+ Q& y& A: L5 l, s1 l
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
# L' N( B4 S M& }% D% w! @, L* nCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are* {& ~4 ^$ s3 j; }
positive for the year-do-date, including high yield.( L6 C5 L- `* ^% `. |3 g
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
/ P- ~( P; m5 O" {9 Q+ _, M% Efinding financing.1 y4 W# n1 l0 i
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they! V, e/ [% v* e9 X
were subsequently repriced and placed. In the fall, there will be more deals.7 B) ~ [! T C Y
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
; `% q( w; t1 [2 J5 a' S, Ris now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
+ {' h* Y6 \8 a9 p* Ogoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for6 Q0 e6 Y6 a4 L
bankruptcy, they already have debt financing in place.
! ~4 V* A) d+ ?# K! ?" n/ F European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain1 D( D- a. C( F
today.! T0 c2 {, |( \, n
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in4 a: R4 s h7 Y8 N, G5 e
emerging markets have no problem with funding. |
|