 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
+ G& Q' c! F$ [* V/ q- v The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long' r- Z& |' S* D( O$ `
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
1 C. l, w# _: S" c! e9 n0 Y1 eimpose liquidation values.7 ^: Y4 `3 m0 n/ T0 u
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In; j- u+ D; k9 q2 C& ]; c$ Y
August, we said a credit shutdown was unlikely – we continue to hold that view.1 e4 W4 x" Z0 H; c+ {8 L4 ?7 u
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension4 Z4 X6 q9 H) d* G. i, ]0 a8 U* U- c
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
$ q2 o3 C5 T/ q, r$ e" U1 z
/ ~, j" ]+ u5 C( A& X: rA look at credit markets+ b5 f3 A+ v- q; z, \7 z
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in$ D0 A0 e# I7 s+ i" {9 ~; B
September. Non-financial investment grade is the new safe haven.6 Q1 W, A$ L! [1 ]/ N: ]8 O
 High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%9 o2 s) J- Y% l& l, t5 o
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1 ^' }/ Z) u. P8 x
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
; `4 {+ {4 g0 K* ?2 b" v, Taccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade, t# u1 x b2 E3 L
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are3 r" ?& z2 R$ z, E- m
positive for the year-do-date, including high yield.- h& @, E/ N/ r( b# e
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
' ] P- z6 K& ]finding financing.
; d& t) r, L) t; l0 {: {# y Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
% h' Q! v5 j! G! W$ U3 ]. v# L% i7 Uwere subsequently repriced and placed. In the fall, there will be more deals.
K' N" w3 N$ J6 v9 u0 L1 }5 I Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and9 E0 d. H* T( [2 ^' n) G
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
/ q6 F9 V. u* W8 O2 Z X0 p7 xgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
8 s9 ~' \# W1 W3 U9 @$ ?+ p0 O7 s6 jbankruptcy, they already have debt financing in place.! A3 ^6 q% w1 t3 c0 \$ Y! z1 Z9 X
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain9 d4 F* E: w: `+ o9 R( t4 P& m/ h5 V
today.
' s4 k, S& Z& m: T I Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
8 O% Y- y, {1 X" }) f: D4 Cemerging markets have no problem with funding. |
|