 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation9 n) Y1 Y7 J% w# Q2 j& N) M' y; g
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long' e2 G e% S' j# r. i
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may7 ^4 t0 m$ [* ]
impose liquidation values./ R! L( b, k! c8 }8 A; z
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
* p$ V% f! h. E: v0 r, fAugust, we said a credit shutdown was unlikely – we continue to hold that view./ r& M7 Q$ N# Q5 z
 The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension1 I; P1 o( @. T0 g; z% a0 X# v
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
) o! D3 D- M. E
5 s( c9 e8 j/ w1 r7 uA look at credit markets
/ `: t) N& s3 E2 V- y } Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
0 r5 a8 E* Z% h- ?September. Non-financial investment grade is the new safe haven.
" O3 x, K0 R& i7 c High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
2 g7 N; Z* B7 o. |then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $11 A# D" g2 V/ d' n2 a
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have: W3 z8 V$ L k2 Z; g- D
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
/ q; D% A0 O5 h- Z" c3 P$ ~CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are6 J3 @. n1 m' V" ^4 c. O( @
positive for the year-do-date, including high yield.
3 i7 {, u, d. B: @6 ~ Mortgages – There is no funding for new construction, but existing quality properties are having no trouble9 M) m6 S. t8 a/ w, @
finding financing.
( _1 \( |( l* l8 [( ^# \- W( Z Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
; `+ w, H# u. n# v# Fwere subsequently repriced and placed. In the fall, there will be more deals.
. x+ I" {1 A9 P3 V; |+ ^! j7 { Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
- e7 ~2 i2 Z( c6 Z: X: e, yis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
1 c. h+ `; S8 @5 j3 ^going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
' A* z, V7 k" U( W" Hbankruptcy, they already have debt financing in place.+ C" {3 f; B' U0 f
 European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
& v9 I/ |. c& g% U* vtoday.* G) K: Q2 M7 e; j
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in4 [; r% a/ g2 E
emerging markets have no problem with funding. |
|