 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation6 V/ r/ B1 p8 r: f
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
1 Q; |" @; s0 A! J3 i% |5 `as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may9 e7 P/ Q0 \1 O+ }2 k- ^+ e
impose liquidation values.6 Y; X7 v6 k" c
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In: x. T" m. {6 G+ M- O5 W4 z. c( d+ }
August, we said a credit shutdown was unlikely – we continue to hold that view.$ j. I# W- [7 A8 h% _; t
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension4 W0 Q {3 S* H1 U. R/ q
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.0 C' c. L! W0 S
6 U' h. k7 A# s4 V- m- _; UA look at credit markets
; s, S2 g* v% h) S. [5 S+ e Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
7 S" V; G9 d2 u) ~September. Non-financial investment grade is the new safe haven.$ K0 G# {' i( f) i' N
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7% y6 j# D# n. B$ K$ [- z
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1# p. g- t5 N5 C' I9 k" g
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have0 u* j/ J- e. |8 b+ [
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade- B, s7 ~% m) [/ N+ h+ i
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are4 l8 g" C3 P% ?5 _6 U" C
positive for the year-do-date, including high yield.
% J! |* b/ S$ m, W& w9 F% B Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
) J9 [: f: x4 @/ n7 I, C0 `finding financing.6 _ u D0 x" _5 |+ b
 Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they1 t& A5 O) I1 E1 Q
were subsequently repriced and placed. In the fall, there will be more deals.. w. H3 W! l' r. j
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and- Z- h1 S3 j6 x+ a, I7 | Y
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
5 f V/ k1 G3 k' kgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for3 l! z& C' f/ ]7 m% b, F
bankruptcy, they already have debt financing in place.
$ `7 @) R; }8 M. s: z0 @ European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain% }! ~4 U* B3 a* O5 ?( o
today.
7 [ N1 {9 d. Q8 u- f' I' m/ L Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
( X x$ L4 p0 |; l0 ]" J# K; Iemerging markets have no problem with funding. |
|