 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation8 s, x; y! x' N7 n- O; N& {) c9 t" R
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long1 m2 k- u; F% N/ G
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
( y U9 s ?. R. p, d2 nimpose liquidation values.9 B! @9 P B6 ~- l- e! u* S- M% B1 a
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In6 I `! ~' q" y, g6 `3 i* h
August, we said a credit shutdown was unlikely – we continue to hold that view.# v, F( ]/ c7 Y
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension6 K( @' t! p! c A( h
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.% z1 u4 q/ b0 C& _+ Y
/ g& e3 W: v* l: s0 @2 H$ H2 x! zA look at credit markets1 N6 R8 o3 C7 j$ ]
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in7 P# l* J3 j G K
September. Non-financial investment grade is the new safe haven.
, v/ I1 ?2 q+ ` High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
- L- p) ]0 I) J( [# C) Rthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
1 u* D5 s' W1 I3 l" p4 Nbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have$ H2 w' h! {0 Z+ Y4 Y9 D
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
& H' n4 x2 C5 _# jCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
/ f7 R2 s, g$ ^* Q( Bpositive for the year-do-date, including high yield.4 k1 ]8 R4 Z. D/ I4 n) x7 {
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble; \( ]4 x) M' k) X; X8 j4 f( k' J
finding financing.' _9 o2 t* ]1 B
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they' F% s- E4 y; u5 d% r* U! p9 f
were subsequently repriced and placed. In the fall, there will be more deals.' }+ _& M0 f1 ?5 I% y
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
5 I! o4 E% H& g3 p2 [! k8 x# [is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were% y, k3 K$ h8 E$ ~' O8 p" h
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for F1 V: f4 t1 f. s, f
bankruptcy, they already have debt financing in place.
# E6 J2 ~9 W7 U" ]8 R3 r European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
: _7 Y7 A& {/ |today.: V$ A e" b8 y V
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
) y9 G) Q4 `! H" u) n2 R8 G& O8 ^emerging markets have no problem with funding. |
|