 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
+ }# L3 b, A! r: ?. T The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
% ?+ }! V" b/ k3 yas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may; ?3 {) `- Y, v" r' ?/ \0 w5 A$ Y8 `
impose liquidation values." f3 Z- R4 f) T0 H6 c" Q( @# E
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
: L+ h! d; R5 \0 iAugust, we said a credit shutdown was unlikely – we continue to hold that view.
7 D( {5 ]. w0 n) s8 J* t. x. o- R The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
4 y5 j$ a1 @0 n4 `1 k$ _scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.0 N; c6 \" j+ l4 m4 p
; b" j1 U* k3 z0 q9 \2 }. z" \( |A look at credit markets+ {. Q# s2 ]0 e: w, p
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in! b1 ]( f* Y" {$ ]
September. Non-financial investment grade is the new safe haven.9 R5 m# I P5 v% S
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
5 q5 z2 _9 P5 y; g* U! cthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
; a6 Y+ U9 N" }# Zbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have! t' ~! V- u: m7 B! b
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade) l& j$ `& \* N( ?- j
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
3 {# w0 v; d# H" N, @9 ipositive for the year-do-date, including high yield.
4 n8 M& `" M4 a* N) _$ ?8 D# g4 m Mortgages – There is no funding for new construction, but existing quality properties are having no trouble. O5 y6 P7 I' q
finding financing.
8 g6 O* F- Z0 I0 k- n Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
9 w9 _. r9 m& E+ k) ]& y2 B9 cwere subsequently repriced and placed. In the fall, there will be more deals.6 ?1 R( G V% C
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
5 h i# x! T+ S6 m- ]! jis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
g+ y0 J' l8 }$ { D3 Y$ Fgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for7 F) ]6 b/ p8 J2 m
bankruptcy, they already have debt financing in place. M ]: N/ `9 T+ a$ r
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain1 k5 d+ V) i# t) m0 o2 T6 n* `' Q' R
today.
& V6 Y, D) H+ J3 T2 b Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in6 Z) u7 m) m4 P3 i) z+ k
emerging markets have no problem with funding. |
|