 鲜花( 3)  鸡蛋( 0)
|

楼主 |
发表于 2011-9-17 13:16
|
显示全部楼层
Current situation
6 G) a* m+ C; Z The lesson we learned from the 2008-2009 credit crunch is how credit markets affect stock valuations. As long: f9 |& A4 U+ f. Y6 [+ q p g
as funding markets stay open, equities are valued as going concerns. But if credit markets close, markets may
3 j, Q# e+ L d5 M6 aimpose liquidation values.9 q1 M8 }4 |; Z/ O& J# G
 In the summer, the European credit crisis caused another round of market worries about a credit shutdown. In) `: x5 c; I1 V5 a7 X( z% R
August, we said a credit shutdown was unlikely – we continue to hold that view.
" [) q z# {, e" K The collapse of interest rates on 10-year Treasuries to 2% leaves banks, insurance companies and pension
* o1 G) d' J9 n R2 \scrambling for higher yields to satisfy their obligations – this is supportive of corporate bond markets.6 c K1 C% {! f0 ?5 J, h
$ L2 O9 J5 @* B3 D# x- PA look at credit markets$ ^2 \4 u3 A8 d
 Investment grade – $17 billion in new issues were placed last Wednesday. We’re expecting $80-$100 billion in
$ e9 K e" e% Y5 n: r, f( e* KSeptember. Non-financial investment grade is the new safe haven.
$ l4 C+ a% R9 U. q5 N High yield – In March, the spread above governments was 450 basis points, today it’s 740 bps. Yields were 7%
4 G4 G0 [% U" T# M- R( Tthen, now they are 8.5%. New issuance has been about $30 billion a month, although August saw only $1
! m, ]$ L0 j. Q; I1 f1 bbillion. That said, the market is still open. Risk has been repriced – but appropriately priced issues still have
3 O+ S7 v3 q' |2 T- gaccess to the market. There are only two parts of the global bond market having difficulty – ultra-low-grade
L9 M* ]; @4 C6 y' oCCC issues and European high yield, which are both down about 2.5% year-to-date. All other bond markets are, t2 U$ Z6 C# Z9 ]: L' c8 e
positive for the year-do-date, including high yield.
& K; p* `: k4 D" \8 @2 r; m/ H Mortgages – There is no funding for new construction, but existing quality properties are having no trouble5 }$ d5 ]" C2 F/ f2 i% F! b
finding financing.
/ K, O" }$ }, U" ` Commercial mortgage-backed securities (CMBS) – In the summer, there were two failed transactions, but they
# c: o' w" h* T& @) {6 W Owere subsequently repriced and placed. In the fall, there will be more deals.
7 U m9 Y$ E$ @7 C4 r0 T4 X3 S, e Leveraged floating rate collateralized loans – The index was trading at $90 last September, $96 in March and, P+ Q5 u! Y) V
is now back to $90. Changes were a result of interest rate expectations (people thought that interest rates were
. N# j% X# e+ Q7 r; jgoing up) rather than liquidity. Chapter 11 companies have no problem getting secured and when they file for
" \" ^5 M% v$ p& Vbankruptcy, they already have debt financing in place.
4 j$ h& J ]3 Z$ Q% w European banks – European bank lending conditions are tighter. This is the weakest link in the financial chain
/ h5 v# t, Q: a0 Q" Mtoday.
& T. U7 D; R4 k& h( r1 x Emerging markets – Sovereign rates have rallied along with U.S. Treasuries. High-grade corporates in
3 [2 m; z2 P; Lemerging markets have no problem with funding. |
|