CREDIT MARKETS

Treasuries:
Treasuries advanced Tuesday, pushing yields down the most since at least mid-December, as Treasury Secretary Timothy Geithner’s plans to help troubled U.S. banks disappointed investors.  The plan is missing some key details market participants were hoping for and Geithner’s comments that a recovery will be slow made investors less likely to hold riskier assets, including stocks and corporate bonds. Geithner said his new plan to rescue the financial industry and restart stalled credit markets, including a strategy of partnering with private capital, will cost more than $1 trillion.  The Treasury Department sold a record $32 billion in three-year notes to yield 1.419 percent, the first tranche of the biggest quarterly sales of notes and bonds on record. Indirect bidders, bought 44.8 percent of the sale, the highest proportion since 2004, indicating strong demand from investors. The government resumed selling the maturity on a monthly basis in November, after an 18-month lapse. Wednesday will bring $21 billion in 10-yea notes, followed by $14 billion in 30-year bonds on Thursday. Both long-term debt sales are for the most ever.

Click on chart to view larger:

Commentary/New Issues

Corporate:
$1.0 BLN, NewsAmerica, Baa1/BBB+, 2 part $700 MM, 6.905, 3/1/19, +410bp; $300 MM, 7.875%, 3/1/39, +437.5bp $350 MM, Oglethorpe Power, 6.10%, 3/15/19, A3/A, +325bp

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 offering mentioned and therefore offerings will be subject to availability.

All statistical data is sourced from Bloomberg Financial Markets

CREDIT MARKETS

Treasuries:
Treasuries fell on Monday, pushing yields to their highest in more than two months, before the government floods the market with its biggest quarterly refunding package on record.  Shorter-term securities fared better, with yields a little lower in early trading, amid disappointment in further delays from Washington in the details of a plan to support banks and continuing debate in Congress over the stimulus package.  The government will auction $32 billion of three-year debt tomorrow, $21 billion of 10-year notes on February 11 and $14 billion of 30-year bonds on February 12. The difference between yields on two- and 10-year notes was 197 basis points after touching 201 basis points, the steepest since November 24, as investors demanded more to hold longer term securities. It was 125 basis points on December 26.  The cost to protect corporate bonds from default dropped for a second day reached a three-month low on optimism the administration ’s plan will stabilize the financial system. The economic news tomorrow will focus on the details of the economic stimulus package presented by the Treasury Secretary Timothy Geithner.

Click on chart to view larger:

Commentary/New Issues

Corporate:
$4.0 BLN, Cisco Systems, A1/A+. 2 part $2.0 BLN, 4.95%, 2/15/19, +200bp; $2.0 BLN, 5.90%, 2/15/39, +225bp $1.5 BLN, Unilever Capital, A1/A, 2 part $750 MM, 3.65, 2/15/14, +170bp; $750 MM, 4.80%, 2/15/19, +180bp $700 MMMcKesson Corp, Baa3/BBB+, 2 part $350 MM, 6.50%, 2/15/14, +450 bp; $350 MM, 7.50%, 2/15/19, +450bp $250 MM, Connecticut L&P, 5.50%, 2/1/19, A3/BBB+, +250bp

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 offering mentioned and therefore offerings will be subject to availability.

All statistical data is sourced from Bloomberg Financial Markets.

CREDIT MARKETS

Treasuries:
Treasury prices declined Friday, sending yields higher for a third week, after the economy lost more jobs last month than economists had been bracing for and raised concerns that Congress will have to issue more debt to combat the recession.   The nation’s economy lost 598,000 in January, the most since 1974. The unemployment rate rose to 7.6 percent, more than predicted, from 7.2 percent in December.  Longer-dated debt sold off more as supply-wary investors expect worsening data to only add fuel to efforts by Congress to pass, possibly later Friday, a massive-economic stimulus package—something that will entail the issuance of billions of dollars in fresh government debt. U.S. stocks rose, with the Standard & Poor’s 500 Index gaining 2.2 percent. The U.S. will probably borrow $2.5 trillion this fiscal year ending September 30, almost triple the $892 billion in notes and bonds sold the prior 12 months. Next week has the following economic news: wholesale inventories, retail sales and business inventories.

Municipals:
U.S. municipal bonds advanced for an eighth day and sent a benchmark 10-year yield to the lowest since 2003 as debt from the week’s largest new issue gained.  State and local government bonds have return  U.S. state
and local government bond sales rose to a three-week high as the municipal market extended a record rebound that began in mid-December. Borrowers led by Georgia and the Los Angeles Unified School District sold at
least $4.8 billion of fixed-rate bonds. Bond yields reported remained unchanged today as few issues of any size were brought to market. The 10-year, top-rated bond closed at a median yield of 3.31 percent, down from a
three-month high of 4.28 percent on. Investors have been putting money into municipal-bond mutual funds the past five weeks after withdrawing an unprecedented amount last quarter. Yields on AAA general obligation
bonds due in 10 years fell to 3.2 percent, the lowest since June 2003.  The tax-exempt yield gauge is approaching parity with the comparable-maturity U.S. Treasury note after jumping to an all-time high of 2.1 times its taxable counterpart in late 2008. The historical average was 0.82 times. Lower-rated issuers still face more obstacles, as the added borrowing costs investors are demanding above benchmark levels aren’t far from record highs. The gap in 30-year yields between top-rated general obligation bonds and BBB-rated revenue securities was 399 basis points after reaching a record 429 basis points. The final read on the MMD was 2010-20116 yields were lower by 2-4 bpts; 2017-2039 yields were lower by 5-6 bpts.

Click on chart to view larger:

Commentary/New Issues

Corporate:
Nothing

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 offering mentioned and therefore offerings will be subject to availability.

All statistical data is sourced from Bloomberg Financial Markets.

CREDIT MARKETS

Treasuries:
Treasury prices were slightly higher Thursday, but they pared an earlier gain after U.S. data showed initial claims for unemployment benefits jumped last week to the highest level since 1982.  First-time claims for state unemployment insurance reached 626,000 in the week ended Jan. 31, up 35,000 from the prior week. And continuing claims, a barometer of the difficulty of finding a new job, increased to a record 4.79 million.  The data came a day before the release of the government’s broader payrolls report for January. Some analysts expect a total of 525,000 jobs to have been shed last month, with the unemployment rate projected to have climbed to 7.5%. Traders also said gains may be capped before the government sells a record $67 billion in notes and bonds next week, continuing a wave of debt sales as the U.S. finances its various bailout plans. A separate report said U.S. fourth-quarter productivity rose 3.2%, as hours were cut back more than output.  Economic news for tomorrow will focus on the nonfarm payroll report.

Municipals:
U.S. municipal bonds advanced for an eighth day and sent a benchmark 10-year yield to the lowest since 2003 as debt from the week’s largest new issue gained.  State and local government bonds have returned about 5 percent in 2009, outpacing a 3.3 percent decline in U.S. Treasuries and a 0.2 percent gain in corporate debt. Tax-exempt mutual funds benefited from five weeks of new investment after record withdrawals last quarter. That’s an indication that the flight to quality is abating and investors are willing to start assuming some more credit risk and Munis have done extremely well year to date.  When outflows slowed down, funds had money to put back to work,”. “We’re just seeing a lot of investors from different corners come back into the market.” Yields on AAA 10-year general obligation bonds fell three basis points, or 0.03 percentage point, to 3.20 percent.  Bill Gross, co-chief investment officer of Pacific Investment Management Co said that municipal bonds should be among “additional assets that deserve and need support” from Washington. Lower-rated issuers need the federal government’s help.  “The market is expecting some type of relief. The better borrowers, the highly rated ones, are getting pretty full access to the market now.”

Click on chart to view larger:

Commentary/New Issues

Corporate:
$3 BLN, Caterpillar Financial Services, A2/A, 3 part   $350 MM, 5.75%, 2/15/12, +437.5bp; $1.65 BLN, 6.125%, 2/15/14, +425bp; $1.0 BLN, 7.15%, 2/15/19, +425bp

ABS:
(priced) $600 MM, Goldman Sachs, ABS

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 offering mentioned and therefore offerings will be subject to availability.

All statistical data is sourced from Bloomberg Financial Markets

CREDIT MARKETS

Treasuries:
Treasuries declined Wednesday, sending yields to the highest in at least two months, after the government moved to put a record amount of debt on the market to prop the economy.  In addition to planning an auction of $67 billion in notes and bonds next week, the government said it would resume issuance of its 7-year note later this month and will sell its so-called long bonds more frequently.  The Treasury said its quarterly refunding will include auctions of $32 billion in three-year notes, $21 billion in 10-year notes and $14 billion in 30-year bonds. U.S. debt prices had been higher earlier. Traders also digested a preview of Friday’s jobs report from ADP Employment Services, which said it estimated private companies cut 522,000 jobs in January.  Economic news for tomorrow:  initial jobless claims and   factory orders.  The highlight of the week is the non-farm payroll on Friday, the forecast is that 540,000 jobs were lost in January.

Municipals:
Los Angeles Unified School District sold the largest offering of California municipal bonds in seven months, obtaining orders equal to more than two times the amount of securities available. Because of the state’s crisis, there’s a penalty being paid,” “California taxpayers are ending up not getting as much bang for their buck for their voter-approved bonds because the market sees what’s happening in California. Georgia and the Massachusetts Water Resources Authority, finished bond sales a day earlier than planned. The offerings totaled about $1 billion Municipal-bond mutual funds reported four straight weeks of new investment this year, after shareholders redeemed a record $11 billion during the fourth quarter.  Yields on tax-exempt general obligation bonds due in 10 years fell two basis points to 3.34 percent.  2010-2014: yields were unchanged; 2015- 2023 yields were lower by 1-3 bps; 2024-2039 yields were lower by 4-6 bpts.

Click on chart to view larger:

Commentary/New Issues

Corporate:
$5 BLN, Novartis, Aa2/AA-, 2 part   $2 BLN, 4.125%, 2/10/14, +225bp; $3 BLN, 5.125%, 2/10/19, +225bp  $750 MM, CME Group, 5.75%, 2/15/14, Aa3/AA, +387.5bp $500 MM, Georgia Power, 5.95%, 2/1/39, A2/A, +225bp

ABS:
(priced) $547 MM, SLCLT 2009-1, ABS

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 offering mentioned and therefore offerings will be subject to availability.

All statistical data is sourced from Bloomberg Financial Markets

CREDIT MARKETS

Treasuries:
Treasury prices fell Tuesday, pushing the yields on longer-dated debt higher, as investors monitored progress on the economic-stimulus bill before Congress and braced for increased issuance of government securities.  The U.S. may sell $69.25 billion in notes and bonds next week and reintroduce the save year note. The Treasury will likely sell $32 billion in three year notes, $22 billion in 10 year debt and $15 billion in 30 year bonds.  The U.S. is increasing its debt sales to finance a growing budget deficit and programs to spur the economy.  Bond yields remained higher after the National Association of Realtors said the number of new sales contracts on existing homes jumped a seasonally adjusted 6.3% in December. The increase points to a healthy gain in existing-home sales in January and February, as buyers take advantage of lower mortgage rates and falling prices, in connection with discounts due to rising foreclosures. Economic news for tomorrow will focus on ADP employment change.

Click on chart to view larger:

Commentary/New Issues

Corporate:
$4.225 BLN, Altria Group, Baa1/BBB, 3 part  $525 MM, 7.75%, 2/6/14, +587.5bp; $2.2 BLN, 9.25%, 8/6/19, +637.5bp; $1.5 BLN, 10.20%, 2/6/39, +650bp $3.0 BLN, Procter & Gamble, 3 part $1.0 BLN, 2/08/10, +3ML+25bp; $750 MM, 3.50%, 2/15/15, 167.5bp; $1.5 BLN, 4.70%, 2/15/19, +185bp

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 offering mentioned and therefore offerings will be subject to availability.

All statistical data is sourced from Bloomberg Financial Markets

CREDIT MARKETS

Treasuries:
Treasury prices gained Monday, pushing yields lower, after a government report that showed consumer spending falling for the sixth time in seven months. U.S. consumer spending slipped 1% in December, slightly more than the 0.9% decline consensus anticipated in a survey of economists. The report also showed that personal income fell 0.2%, compared to a forecast for a 0.4% decline, and that inflation was flat to close out 2008. Bonds also played off the action in U.S. equities, which staged a partial recovery after opening broadly lower. Treasuries prices stayed up even after the government said it expected to borrow $493 billion in the current quarter, 25% more than it estimated three months ago. For the April-June quarter, the Treasury Department said it expects to borrow $165 billion.  On Wednesday, the government will release details of how much it plans to issue next week in its quarterly debt refunding. Some analysts also expect the government to resume issuing seven-year notes after a 16-year absence.  Economic calendar for tomorrow has pending home sales and total vehicles sales.

Commentary/New Issues

Corporate:
$1.0 BLN, Wellpoint, Baa1/A-, 2 part; $400 MM, 6.00%, 2/15/14, +432bp; $600 MM, 7.00%, 2/15/19, +432bp

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 offering mentioned and therefore offerings will be subject to availability.

All statistical data is sourced from Bloomberg Financial Markets

Type: Series 2009 A-B Aaa/AAA

Amount: $613,850,000

Coupon: 2.20%

Maturity: 6/15/2012

Deal Size: $3,000,000,000

Rating: Aaa/AAA

Coupon: 1.65%

Maturity: 2/23/2011

Deal Size: $2,000,000,000

Rating: Aaa/AAA