 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation' |7 \ j7 o8 V# u+ G( U3 J
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long; o; c: h& e/ s, H2 T$ a
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
, ]4 D" G9 C G% R* ~. j5 bimpose liquidation values.$ v% K$ P# X7 q! s: A
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
" A6 l) v! @% uAugust, we said a credit shutdown was unlikely – we continue to hold that view.' @7 H; k% E3 R1 I- H
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
4 j! v* u3 r& l: fscrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.8 `7 M3 A! _1 r) j: ^6 S
, ]* q* v: O9 r+ O- I: _$ e
A look at credit markets5 [' Z5 P4 A2 s* i" @9 D# [! w f
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in. D1 a6 I: i3 [9 h( r+ ~- {
September. Non-financial investment grade is the new safe haven.
( y+ |0 G4 T6 N) ?; b% E" g High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7% n5 {3 }1 z; o! ^
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1) {! V. o- D. h$ X' N# H
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
7 t8 [& ~& [% f) R. D, x: faccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
4 i9 h, A! U4 z5 P4 ]CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are1 j- w+ f: H8 D; }2 O
positive for the year-do-date, including high yield.
. v, ]" k. k0 i0 T, `) ~' A Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
' u& j" ?3 E- J, s; gfinding financing.
) B& h2 r# k2 e( J) r+ g Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they/ F! F* P" f4 V8 r2 h# T
were subsequently repriced and placed. In the fall, there will be more deals.4 f0 H' u6 T9 j& Q" K
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and. g( Q9 N* [) p& ^. c9 u
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
6 P5 s1 F% G1 c9 {going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
( p, G$ c4 K. K0 |9 a4 n: ~bankruptcy, they already have debt financing in place.7 x& ~- E6 j# W
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain3 g, O$ j% i( Y$ {
today.
, Q5 b% B& I3 z1 i Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in8 q$ D( g9 x& ~
emerging markets have no problem with funding. |
|