 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
- h; X4 a0 L. J V' A) c' s The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long) [1 K" @. _9 N. w
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
( Q$ N2 A6 e, q+ ^( E* A- oimpose liquidation values.
) g6 u! d7 ~$ [- ^* a- U In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
" B" {6 A8 E6 n2 f/ j3 F) jAugust, we said a credit shutdown was unlikely – we continue to hold that view.
E( z9 f- j5 v3 _9 J The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
) Z& f: F+ P) M! R8 a% X% y1 rscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets./ f1 M& t. N/ a
+ E- K5 F3 Q' B0 m1 o* @- @A look at credit markets+ z3 Q$ w4 \( }. B+ x- p; P/ G4 n
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in* L) K- F' H- F- H H& H
September. Non-financial investment grade is the new safe haven.
1 e; o/ }+ i' G: c, A5 \; ]9 ~ High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
- d* u2 l7 H4 e8 k. ]then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $19 i, \+ E% S- U: J w* z- {
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have0 L* ]. Y# e' b) c; ]
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
! c! L/ o" U1 Q( J" {! ^! }. [CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are8 l$ ~6 J4 C; i$ S
positive for the year-do-date, including high yield.
5 R9 D+ P! k8 v8 H8 b5 z Mortgages – There is no funding for new construction, but existing quality properties are having no trouble& ~6 g, x3 F0 H, m* Q
finding financing.$ g8 ?( I% g. F( R
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they. A z- h- J% H! I+ Y! z6 ?
were subsequently repriced and placed. In the fall, there will be more deals.$ I0 Q$ z, U7 q$ f' P
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and( T, N# @8 L& h; O% [ Y# f
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
% z% D7 r+ G- k4 T# B N6 Vgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
1 w0 i" v) u W, i' qbankruptcy, they already have debt financing in place.
# E; t+ d1 z. J; X9 D) p European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
; M; I3 `1 c0 Y* \) ctoday.: V( {1 `5 T! q% C
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in% x) P; v0 H# R# z
emerging markets have no problem with funding. |
|