 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation# D' c% q6 J$ h' y
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long q. \9 A; G) G& n" J# ^; _5 T
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
. n8 Z Z) K8 { Z$ rimpose liquidation values.
! l6 d8 v% r5 A' T5 Y In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
# `8 ^5 K2 X7 t- C: V: U. ^. cAugust, we said a credit shutdown was unlikely – we continue to hold that view.
- F. i3 [- _0 O: D5 m6 D; g The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
2 ~6 N8 I8 Y* i% l \1 W) \scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.2 f! a2 C! h3 H: ?! C
! I1 [) K0 |9 m. }! R
A look at credit markets
6 ?5 Y: w o$ }+ C+ A Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
7 d/ q. r, g9 r+ BSeptember. Non-financial investment grade is the new safe haven.
2 Y; \: h! Y9 ?- p2 o) x High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%( `/ o. y, x s& |' w) q' L
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1$ G8 B4 g, ^# i6 i. T& }# J
billion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
, o3 o) T# R+ Z) v0 Q- Qaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade5 o0 P. }) z1 d. q
CCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
/ }/ U( ?% b2 E. ]' t* b8 }positive for the year-do-date, including high yield.2 L6 u1 e( X, p5 I* R. [6 }
 Mortgages – There is no funding for new construction, but existing quality properties are having no trouble
/ I" Z J: N) g& L: z: b6 x. Zfinding financing.
7 a" D: j- Q8 `) V2 t Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
, @: ]( L& Q" c4 Nwere subsequently repriced and placed. In the fall, there will be more deals.3 @$ J6 s8 }! J& z# O7 f1 c
 Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
; K& R6 P0 I; G+ Vis now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were% u8 I! W0 D3 J' {% u; q4 ]9 f
going up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
7 V" d3 P& p; |, nbankruptcy, they already have debt financing in place.
7 g/ x+ C# C! A European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain! ?6 M1 M5 \# x4 i/ O: B( c
today.% [# e7 B; H8 i
 Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
4 r2 Z9 N. ?! i% |9 cemerging markets have no problem with funding. |
|