 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 M, D; }4 W2 _
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long# H: C2 t8 V" a
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
0 w4 K. T7 g% M" q* c1 b$ ]- i$ F9 `impose liquidation values.& n( C& ^. B8 o/ P- v
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
% B/ V* O1 E" ~August, we said a credit shutdown was unlikely – we continue to hold that view.( [8 c- v* Z/ U$ N
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension) G2 y0 h# I$ l+ a. ?2 ?, J
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
9 C' \; |: z) ?" V+ B# J( t/ D: v$ z) G1 y! X) q
A look at credit markets
) Y6 f- d% l, ]' u" G- i1 ?' M Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in! P* M% t8 n% X$ C5 S/ S
September. Non-financial investment grade is the new safe haven.
7 H5 P J) _) ?; W9 r6 h High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
1 ^ v, F. x, H6 f5 ?2 qthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
$ X, C. S- L3 n& p6 Ubillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
+ W$ V& X# {+ ^# `: baccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
- | n) E' g+ _8 h! Q! xCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
5 ?6 B; C; u9 I4 opositive for the year-do-date, including high yield.
8 I/ j( N: P e. c Mortgages – There is no funding for new construction, but existing quality properties are having no trouble; S: ]! n2 B A- F, @
finding financing.- d% T; k, L% s
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they& l* @% e, b' f! C
were subsequently repriced and placed. In the fall, there will be more deals.& b ]' n3 ?3 ?
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and- h" g+ a! p; x4 A. J$ D
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were/ y' w# P3 F1 R0 L: Z4 n( `
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for. e3 Q1 d4 _1 f4 }; P
bankruptcy, they already have debt financing in place.
3 z" `7 v+ g6 R$ a7 m* K, N* p6 ~3 z European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
3 C+ `; R( _ m8 U# Z1 u3 Y" utoday.
# G# T5 E4 }' l7 r3 b, w Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in( N! F# ^9 c" I5 ~0 W5 v
emerging markets have no problem with funding. |
|