 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
: Z9 V, `# b% ?( q The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
# r5 f' W& w4 U$ F4 kas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may: O4 T9 w% c! t7 V& v. X" Z Q3 v
impose liquidation values.; g5 O- f' R0 v( y/ O Y
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
2 x# c& c% n* ]$ I' x* z6 \August, we said a credit shutdown was unlikely – we continue to hold that view.
, K0 F, N7 V: I5 K9 o/ V" I# q- E/ T The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
5 H( {2 {6 ]; B- D: q; M( Cscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.+ k2 x' b; _* A4 `
5 \! u; x" R! S3 M+ j- `+ q: [/ gA look at credit markets. V0 u7 F A2 `/ A
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in0 H6 H* x+ j/ D0 q. G7 n6 Q
September. Non-financial investment grade is the new safe haven.2 s% ]" i+ _& |1 C
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%0 B. f6 y6 ?3 Z+ h) K* b
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1: b" ]$ n) W. E3 ~ Z; y+ ^& ^
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have+ [! [: }# Q7 p: s" U
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade& i' R5 ^% U1 L) S
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
; @8 v. g0 l& L8 |* A4 D% wpositive for the year-do-date, including high yield.
: r5 {% L9 T# o( G Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
" H. G, ^' g1 O5 M: E5 E- ?5 J/ U( ^finding financing., H" {# J$ X! j" Y6 e$ H7 c; j" J3 \
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they& T1 N5 ~) ^) d% v$ s
were subsequently repriced and placed. In the fall, there will be more deals.
3 U/ [! a e5 ~8 p" y7 c2 U Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
6 ?+ q5 ^# e- f% T3 D0 W" his now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were& g$ ^7 A, {; M! \4 @
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for: j6 b0 X0 O9 `& k
bankruptcy, they already have debt financing in place./ K G) R- X) j3 h* Q
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
/ Q: r' m. ]4 L& w ~today.
) {8 z. ?- }7 Y" P1 C: { P Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in* Y: h) m: u5 G7 {: o" t0 y4 f
emerging markets have no problem with funding. |
|