 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
2 c# _8 E6 f6 C: b5 S The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long1 d# G- y1 h5 j
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may. R6 w- z8 G) G
impose liquidation values.
- J6 W; t4 N( \5 }) Q3 ~2 j In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
' t) i- e7 U0 h: ~August, we said a credit shutdown was unlikely – we continue to hold that view.
/ f( `4 @* u9 z5 z. c6 F$ A The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
' W6 h ~: _: C+ }7 b9 C9 ]scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.' o9 ]3 @% p# J* g( ^" X
6 p7 \9 B0 @/ k! RA look at credit markets
. _( Y( E9 _: j) k" D Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
9 z3 D& S) X+ f+ ?/ A- ZSeptember. Non-financial investment grade is the new safe haven.
; U* Q& O, H( F High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%4 m5 q" L$ Q& V6 c& O8 T# A9 @
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $15 W7 m" w' H3 ^% a* x
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have7 W* {3 {# C' z7 ?! ]
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
8 q) U+ [! q$ j' p3 O& x$ E, eCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
& P# d) Y9 F: Zpositive for the year-do-date, including high yield.6 K- s Q0 y' y
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble# l. v5 t, R0 r6 `
finding financing.
* x5 {: R" a) h6 h8 Y3 q1 T4 v Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they- m+ {9 O- {6 ?7 {$ l
were subsequently repriced and placed. In the fall, there will be more deals.$ ?4 r# O$ q$ R- O" D, P [
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
6 s0 z; P4 n3 i* B3 N' X; cis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were" ^3 _& p9 p9 w
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
9 M" X5 D* h; Z$ A8 m& Y1 y: d) [bankruptcy, they already have debt financing in place.
C/ {' M# C+ }7 E' P i- W European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain. N9 t5 h$ A6 l) G! {# l
today.
0 z3 w3 G* j9 A- l" |; t Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
! t4 s/ V2 H2 kemerging markets have no problem with funding. |
|