 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation# Y& Q! `: C* q
 The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long
- i; A# k' _; ^1 mas funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may/ V! l9 I$ X3 y5 P
impose liquidation values.; u7 f4 ?/ x7 n6 V- x* ]
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In
/ W. K0 E; i/ ~4 @& F* `4 t( o9 z2 VAugust, we said a credit shutdown was unlikely – we continue to hold that view.
! p3 K. n! S i& _ Q/ U8 o8 ? H$ Z The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension) J/ K- V3 q0 F$ W! S
scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.
# W, g/ N& T! R8 c: x/ d% ?- ?+ _: z' B* e7 F1 ~% q, Z2 U6 G7 p$ R
A look at credit markets' ~3 J* c4 x" _7 d$ x. J( Q8 K
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in& Z+ k5 @9 P$ u+ P' U
September. Non-financial investment grade is the new safe haven.
2 _( `1 n* j6 p8 v* g High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%% e! X# P) G. b J8 `) j
then, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
3 e7 G& u% G2 _+ L: H0 Jbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have3 D+ W! u. f# c( q, a7 b
access to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
4 U: R9 P2 n: y2 P! a, |2 m3 WCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are
7 U' J/ Z/ R3 P: m$ p) ]positive for the year-do-date, including high yield.
* m) g9 D1 v, z! X5 _' t+ e0 F& d Mortgages – There is no funding for new construction, but existing quality properties are having no trouble: v/ {: e9 v- R, t5 S7 N
finding financing.
: z- |' O+ X" j, e8 i Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they* B' k. ^$ @' s) q
were subsequently repriced and placed. In the fall, there will be more deals.
0 D6 k9 c0 c) A Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and
/ O4 {; d5 b/ @/ L2 ris now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
; q$ \4 M6 L/ q- d! A; Hgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for) _$ t- V* m+ ]/ ~9 b/ S
bankruptcy, they already have debt financing in place.
0 R' K8 P, G$ ^ European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
- Z7 p+ `! g0 J, Y2 E# U" Ntoday.
0 k: I( D! L; D8 s6 o# y+ z. Z Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
1 S" N7 Y# t9 o0 |emerging markets have no problem with funding. |
|