 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation. g5 R) r& i, e) G, p+ K
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
. t1 u& e3 s3 |8 p' A1 H) u0 K! xas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may& w- l) J( l& O; r/ K8 }) K
impose liquidation values.
2 t0 d9 W( E w; \ In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
; k6 [! b: x3 v7 @2 c, [August, we said a credit shutdown was unlikely – we continue to hold that view.
. N$ }% V4 t5 x" M$ T The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
/ q8 Z" Y- j. r ?* s" Dscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.; M+ @% s$ G/ t& t. q
( e6 G# m0 U# g* ]A look at credit markets+ j( \! _! Y* {( e9 ]# ?
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in' A. S0 w* o) Q( |
September. Non-financial investment grade is the new safe haven.2 U4 e# c, P* [# ]! }
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%- _, u0 a- f+ e. b- K
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
2 R! g1 y3 V3 v2 W% Y5 Y$ L9 tbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have$ X* I1 o9 e/ y# t: l9 {
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
* }; q" z' P6 i9 R MCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are' |7 \2 S' e# y& L" Q) F
positive for the year-do-date, including high yield.7 w: x: x& y0 m. b0 B. k) f
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
3 |" n6 B L$ @4 X2 Lfinding financing.
9 Q6 [0 E N5 F# Z7 B6 m Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they& ?+ h7 I9 k9 L5 Q
were subsequently repriced and placed. In the fall, there will be more deals.% ?0 b% N: h% Y7 U2 m
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
$ B, l5 R: H- t4 n6 v3 \; `is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were1 a3 Z; J# X( }' Z E; z$ _8 u
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for+ E" d. S! c' Y6 ^" u
bankruptcy, they already have debt financing in place.4 e3 r2 M- `6 w k
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
9 p% M0 k2 q3 s$ t" D5 rtoday.
7 k) ?4 Q1 Q% c$ \& p. t' k Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
1 p8 q! ~& I6 x& a0 ]: oemerging markets have no problem with funding. |
|