CREDIT MARKETS

Treasuries:
Treasuries gained Monday, pushing yields lower, as stocks extended losses ahead of the unofficial beginning of earnings season.The worries come ahead of a slew of corporate earnings out this week. If fourth-quarter results are poor, government debt might look like a more attractive investment despite the huge amount of supply coming into the market. Prices fell earlier as traders noted fixed-income investors were turning their attention away from government debt in favor of corporate and mortgage-backed securities. However, although demand for government debt remains high, the squeezed credit markets are showing signs of thawing. As the economy spirals downward, the government continues to step in with massive rescue packages. And in order to fund those expensive programs, the government sells Treasuries. The economic news for tomorrow has trade balance and abc consumer confidence.

Municipals:
State and local government borrowers plan to raise about $5 billion this week. NYC TFA will be pricing its institutional offering on Wednesday. Delaware received at least $190 million of retail orders for the first part of its general obligation bond offering, run by Morgan Stanley. The State is one of only seven states rated AAA. Minnesota, Virginia’s Fairfax County and the Arizona city of Chandler will auction almost $900 million in fixed-rate bonds to underwriters. The secondary market was fairly active. I was in touch with Lib Dve 5.5% 10/37 ata 6.60-2.50, FL BOE 4.5% 6/25 ata 4.75-4.70. I was posted on NYC TFA 5 7/8% 7/38 @ 100.75, PATH 4.5% 12/36 @ 6.25.
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Commentary/New Issues

Corporate:
$1.5 BLN, Staples, 9.75%, 1/15/14, Baa2/BBB, +829.9bp
$475 MM, Indiana Michigan Power, 7.00%, 3/15/19, Baa2/BBB, +475bp
$250 MM, Berkshire Hathway Finance, 5.40%, 5/15/18, Aaa/AAA, 220bp

ABS:
Nothing

Agency:
Nothing

New Issues larger than $250mm. The fixed income offerings mentioned above are for informational purposes only. Toussaint Capital Partners, LLC, member NASD/SIPC, and/or its affiliates may be a participant in the offerin mentioned and therefore offerings will be subject to availability.
All statistical data is sourced from Bloomberg Financial Markets