 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation* I2 }. T1 j# X; _ @( H F/ X
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long0 |. g+ _- ^9 l" Y
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may" y: t B: l( J
impose liquidation values.- x0 G( h/ E; i3 q& j" {* O1 P
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
5 D2 U: B) K9 ^8 n" n; oAugust, we said a credit shutdown was unlikely – we continue to hold that view.
, I, b' s$ H3 [! ]* n, A" Y The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension7 d+ k7 ]" m8 P I4 j
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.7 e K, e/ N) Q7 G
; v4 T5 b9 ?/ w5 V. h
A look at credit markets
5 q! C6 _# E/ P; ?- p; | Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in4 I! \; |, ]9 Y$ w
September. Non-financial investment grade is the new safe haven.
1 z$ ?# O& S4 l& B& L High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
# e! T) H4 D* b4 d8 F" Xthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
- e4 _* M! a/ t5 B8 abillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have. g N. o# ~$ J. s: f
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
7 F: L. E2 r% ]# W% ^: lCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are& I! X" }" T6 Y% {/ \" J
positive for the year-do-date, including high yield.
o/ L2 V: E& S8 R& Z Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
0 A/ n* `4 p4 t6 h* `1 ]$ B; Zfinding financing.
9 o: l' v/ ~0 V( Z5 ]! l2 E, P Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
' g8 n: t' T- P$ Swere subsequently repriced and placed. In the fall, there will be more deals. f* c- d F0 F: z$ j- B/ }
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
1 i9 ?* @% R0 F5 }is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were1 J. B% i" p3 r; c# b4 c
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for- M9 ?6 P' W- t* ~+ [/ N
bankruptcy, they already have debt financing in place.
$ T# b" P3 b3 f% |$ v European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
9 C1 e0 ?. C: a, e) E2 x9 b8 Vtoday.
* {& \; \/ y8 _. t* K3 k$ U& f- a) E Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in0 M) }9 x# @! m$ S# A
emerging markets have no problem with funding. |
|