 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
' z4 a, G/ Q2 U: k: s The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
2 t6 Z7 f2 {: I- V8 Y/ N* [8 xas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may) s2 ]( @/ F9 u
impose liquidation values.
* `* J& G/ p1 v y In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
5 [6 G# t' l4 b0 U3 Z- z0 yAugust, we said a credit shutdown was unlikely – we continue to hold that view.7 C) Q' N- h9 W( |
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
( V ~" r z6 T* A9 i! gscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.: E! m* {2 c4 s: V0 |, A
$ M1 h8 y# K- h! ]# f: S( h
A look at credit markets
8 r* z$ U6 B* h. W$ e, p Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
! F9 V @" O# lSeptember. Non-financial investment grade is the new safe haven.
1 s0 S2 ~+ ?1 r+ y# z High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7% o! P8 I/ i, E2 P6 x# t
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
+ S& z+ Z6 K9 H) q6 _! @* Abillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have" c$ d: o( v; I# l& Y: F& K" B
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade* k6 [& i0 B- g$ {# I
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
A) R0 [$ P. d8 g1 ?positive for the year-do-date, including high yield.
2 E3 }5 ?2 i7 | ]7 q Mortgages – There is no funding for new construction, but existing quality properties are having no trouble2 V0 A) W% K) A- A5 a* R: }1 s
finding financing.
( a7 C: [3 w9 Y# j Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they7 k: r8 _; g7 _& R, [
were subsequently repriced and placed. In the fall, there will be more deals.
/ g( m! V3 Y0 C, W, }( |' t Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and4 a# K0 U5 c1 k8 S! l
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were7 C) ~1 t3 ^* z8 O
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for9 S2 [' x* _' e6 b! z3 I* ?$ t z' f
bankruptcy, they already have debt financing in place.' l0 H1 c) j; H( }7 w
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain- x9 g2 ~5 A. L7 `3 C9 x) u5 Y
today.* x( \6 j& W% N/ h7 `
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in, l9 D1 C6 B) X0 p3 _% q
emerging markets have no problem with funding. |
|