 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation# m3 l; ~* J) G: Z" w, R; Z1 H$ x
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long) o. Y- \; {4 l/ @9 Y+ F, D& `0 E- S
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may! p* t9 n% L" s
impose liquidation values./ q4 T; q8 l. j+ S q0 z4 W
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In5 J E3 I# v9 T
August, we said a credit shutdown was unlikely – we continue to hold that view.( p" q2 P) F! P) }$ f
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension4 D) U+ G# ? n1 A S
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.: w3 o9 V; M$ N/ Y; M* A
; g4 R5 ?4 b8 ^4 m+ iA look at credit markets
! e+ k' q5 {2 M; e" j Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in/ z: A7 |! Y- D
September. Non-financial investment grade is the new safe haven.; m0 |: w2 }- s- q Y
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
7 r6 _; C! S- Y/ @3 Qthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1( {7 v1 ^4 _0 d5 t
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
$ a G* [% o# @: I. z, qaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
, Q; y9 J) e( D( QCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
' J8 A9 q* s# L0 apositive for the year-do-date, including high yield.7 v; J: U; f/ A" S1 o3 J
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble- s( S9 T# `$ S) m
finding financing.
' D8 I0 j5 I9 c. \7 o7 N$ ?: g Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they5 W; i4 W7 T) f
were subsequently repriced and placed. In the fall, there will be more deals.
7 o( c6 P3 j9 K' _ Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and# d T8 o6 i3 g
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
+ m3 j& U2 ~) o; `+ Xgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
. M i3 H1 ~4 P2 obankruptcy, they already have debt financing in place.# D# b) H* ^5 ]; `. Y0 Z
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain( w$ i& v1 B4 ^& b U0 O! H+ t/ L
today.5 K% @5 [% a9 W; k6 h3 o
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
. w* }0 y v1 w- a$ D% p1 temerging markets have no problem with funding. |
|