 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 g; R- ^1 _* L- m4 _* ]4 N5 _2 B The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
3 Q; [% b+ i; {* V4 uas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
+ \" [+ ^% z7 A+ h9 N7 [: I" Vimpose liquidation values.' ?8 Y$ b( Z% l& U) a5 Z
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
# h% D: L1 J# @6 ^7 a2 ?August, we said a credit shutdown was unlikely – we continue to hold that view." |$ ~, m- l3 w& q# ~
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
& P& _5 H8 X7 {* G0 Fscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
1 s- L$ O$ c, T9 l/ O% k% \: d2 x, v0 K
A look at credit markets
& c; r. ^+ p& ~8 I Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
) ?/ y6 z+ N: }! `+ X6 Y9 Z# bSeptember. Non-financial investment grade is the new safe haven.
* L/ Y) o# F' v- Q. O: t High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%* R: ?3 R, j! E* E
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $16 b1 K( v9 V1 a' Y6 H! y6 j2 A: e
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
5 H8 v0 {. Q1 U* N0 naccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
0 F2 p, @: D% j f5 yCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are4 B' R! O% A2 q5 Y- R0 t
positive for the year-do-date, including high yield.7 k5 B3 H. B* F# ~* a0 U
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble* _ N* n! C" A& Q2 N
finding financing.
& u4 g6 b/ g' X5 z% Z7 P2 V Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they+ P" ?$ Y9 h x. \: `+ Q$ }7 e
were subsequently repriced and placed. In the fall, there will be more deals.: U! E9 D& c, L8 m4 e) ^
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and2 H9 N6 s' e6 K/ f, _2 `# T
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
' g3 g8 c$ `7 t' |/ e% agoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for0 x C+ i- s6 K4 @4 O! j/ O3 z* s
bankruptcy, they already have debt financing in place." R8 H! A2 Q2 b/ U. Y: N/ m$ f3 h
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
# t% t, p6 Z5 H1 \/ e" ]today.
! o" m+ T% j+ u7 t. ? Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in8 v4 Q& L5 b3 I! _% G0 w
emerging markets have no problem with funding. |
|