 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation; [& p0 M# p: @
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
- V% w( U9 [# g% I: Q( Ias funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may. W3 n% V/ ]7 q2 Z Y: X6 l0 i
impose liquidation values.
# P& z1 r6 B0 p In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In' _/ V; G) I& q. C3 C
August, we said a credit shutdown was unlikely – we continue to hold that view.
! F( R1 N+ ?8 B: F% ?# v9 N- \ The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension5 N0 M5 X+ ^2 o$ O
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
; }; r8 k6 ?. l- m* \- U) p3 Q" z5 j6 i: i! j# _6 x; F9 i
A look at credit markets
5 K$ G$ r: c4 A8 f& c7 e Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
0 H e* u; F+ x. z6 w/ T0 X! MSeptember. Non-financial investment grade is the new safe haven.
' Y2 b. R% u) O0 W% c; P- z High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%8 X, X2 ?* o S( ~, J( p2 n$ c
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $13 E6 {$ B2 ^8 o4 d9 F
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
9 z6 N2 ^1 X/ ^. h) Q1 z% ]9 ]access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade- H- w J1 N' S9 m7 {0 C9 @
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
: W4 H7 S3 l: b7 \positive for the year-do-date, including high yield.
3 J6 @1 J8 b6 ~2 p3 I Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
7 l/ p# `) C1 H2 m' |finding financing.
& a$ O* o0 m. O3 ` Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
Z4 ?* Y* S) [2 \were subsequently repriced and placed. In the fall, there will be more deals.! }, X& w; x# q- Q
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and+ a& R) g1 q# L o# n- X; q
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were3 e1 ] y; W: k2 {3 @
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
. |+ K$ T- Y0 \( `; Q7 I7 pbankruptcy, they already have debt financing in place.
7 g( X% i4 M( K% d) i7 E European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain9 a/ d: ^) f6 ?0 V5 ^
today., u3 Y" Z) M+ o c! ~ }) @( H7 F
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
, |8 n4 S: c! kemerging markets have no problem with funding. |
|