 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
9 N: K5 |" V5 K/ a. h7 v' n# } The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long2 `4 ~8 J: d" l2 T
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may, l% @8 b7 ]7 B
impose liquidation values.# | m2 K3 M, E% Y0 t, y" [" Z
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
3 m; @6 H7 X% P% u* t; C- nAugust, we said a credit shutdown was unlikely – we continue to hold that view.1 T3 `' W! w: A7 i+ B
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
" i& Y; d- G; k' M$ K' \6 cscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.' W- L& p) j! j5 @; T1 r
& G2 F* ]' A; d1 S. J) ?
A look at credit markets7 s& r4 a& I; a% u7 _6 M$ D
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
5 m1 k% g; `' N5 v* vSeptember. Non-financial investment grade is the new safe haven.- j" t3 i1 H5 r
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
; w% N. `8 S6 n9 t$ w s9 N! Qthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
. U: X2 u1 s) p( U8 l+ _" abillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have6 ?- r% U0 Q1 i- s1 @
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade8 x4 C! f% ]# h, K2 i9 v
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are2 C$ {2 x0 m4 O4 A& [* @$ F
positive for the year-do-date, including high yield.% [( J2 g- l3 o: U. u+ W( q
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
; M! I S* R9 Ufinding financing.
6 x2 z) h% u+ y) m3 y Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
2 o" s% i: O0 L: J, e1 A: |' lwere subsequently repriced and placed. In the fall, there will be more deals.9 H* k5 E5 _: |1 Z
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and) ?% X0 |: W" p- n: G( D
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were+ u% C/ f6 K$ i( n& ~
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
- X0 E- e" `" R9 obankruptcy, they already have debt financing in place.
. D8 c; l2 X/ T- z( w- Q; y) B2 a+ T European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain7 \( L# |1 a7 X! L2 w+ D
today.8 w. M2 e8 u; J. h+ Z D6 f
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in" d5 ~( L5 y/ h9 [
emerging markets have no problem with funding. |
|