CREDIT MARKETS

Treasuries:
Treasury prices declined Monday, pushing yields higher, as Federal Reserve chief Ben Bernanke’s outlook that the recession could end this year supported global equity markets and reduced the desire for the relative security of U.S. government debt. The U.S. recession will come to an end “probably this year,” Bernanke said in a rare televised interview Sunday. He also warned that the nation’s 8.1 percent unemployment rate will continue to rise and that a full recovery won’t take place until the financial
system is stabilized. Mitigating against the losses in Treasuries, some economic data released Monday came in weaker than expected. The New York Fed’s Empire State manufacturing survey fell four points in March to a negative 38.2, a record low. The Federal Open Market Committee meets Tuesday and Wednesday, when policy makers will release their official forecast for the economy. Analysts expect no change in the Fed’s target overnight lending rate between banks, currently set at a range of 0.25
percentage point to zero. In another sign credit markets are thawing , Pfizer Inc. plans a five part sale of notes to help fund its purchase of Wyeth. Economic news tomorrow will focus on PPI, housing permits and housing starts.

Commentary/New Issues

Corporate:
$1.0 BLN, Smith Int’l, Baa1/BBB+, 2 part $700 MM, 9.75%, 3/15/19, +680bp; $300 MM, 8.625%, 3/15/14, +680bp
$750 MM, Progress Energy, Baa2/BBB, 2 part $300 MM, 6.05%, 3/15/14, +420bp; $450 MM, 7.05%, 3/15/19, +415bp

ABS:
Nothing

Agency:
Nothing

New Issues larger than $250 mm. 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.