CREDIT MARKETS

Treasuries:
Treasuries fell on Friday, sending yields higher, after a report showed core inflation rose in April while manufacturing data from the New York region were not as bad as feared. The government said U.S. consumer prices were unchanged in April after seasonal adjustments. They have fallen 0.7 percent in the past 12 months, the largest decline in 54 years. But core inflation — which excludes volatile food and energy prices — rose 0.3 percent, boosted by a 9.3 percent increase in tobacco prices. Over the past year, the core CPI is up 1.9 percent. Bonds have come under pressure in recent months from massive supply of debt issued by the government to fund its financial and economic rescue plans. But the Federal Reserve has also intervened to buy Treasury bonds to prevent yields, which are used as benchmarks for many consumer loans, from rising too high. Another source of pressure for bonds has been hopes that the U.S. economy has stopped deteriorating as fast as before. However, those hopes have been somewhat curbed over the past week, by factors including disappointing April retail sales numbers. Economic news for the week will focus on housing starts, building permits and initial jobless claims.

Commentary/New Issues

Corporate:
$2.0 BLN, Citigroup, 8.50%, 5/22/19, A3/A, +562.5bp

ABS:
(priced) $1.0 BLN, CHAIT 09-A3, 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.

Type: Series 2009 Aa2

Amount: $54,240,000

CREDIT MARKETS

Treasuries:
Treasury prices inched up Thursday, putting yields at their lowest in more than two weeks, as economic data pointed to continued strains in the nation’s employment outlook and to inflation remaining tame. The Federal Reserve’s purchase of debt maturing in 2010 and 2011 also lent a supportive tone to the early trading in Treasuries. A positive lean in U.S. equities capped the gains, especially for longer-dated notes. Investors have turned back to government debt amid rising concerns that the economy and financial markets may recover neither as quickly nor as robustly as some observers had been hoping. The Federal Reserve Bank of New York bought $2.975 billion in Treasuries maturing between 2010 and 2011. Dealers offered $27.086 billion to be purchased.
Bonds gained support from a Labor Department which said initial claims for jobless benefits last week rose to the highest level since mid-April, in part due to layoffs after automaker Chrysler LLC’s bankruptcy filing. The number of initial claims in the week ended May 9 rose to 637,000, up 32,000. Ten year note yields are up from as low as 2.46 percent after the central bank announced the plan. The Fed considers the increase in Treasury yields more as a reflection of a better economic outlook than a signal it needs to step up purchases of U.S. government debt, according to central bank officials who declined to be identified yesterday. Economic news for tomorrow will focus on CPI, capacity utilization and U of Michigan confidence.

Commentary/New Issues

Corporate:
$1.0 BLN, WalMart, 3.20%, 5/15/14, Aa2/AA, +125bp

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 advanced Wednesday as yields pulled back to levels not seen since April, after a government report showed retail sales fell more than economists had expected last month, raising doubts about the ability of consumers to carry the economy out of recession. Treasuries started higher after the Commerce Department said retail sales dropped a seasonally adjusted 0.4 percent during April. Excluding an increase in automobiles, sales fell 0.5 percent. A separate report said prices for imported goods rose in April as petroleum prices increased. Excluding gas, prices fell 0.4%, indicating deflation is still a bigger risk than inflation in the near term. Treasuries stayed higher after the Federal Reserve said it would conduct five buybacks of U.S. bonds in the coming the next two weeks. There was already one operation scheduled for Thursday, when the U.S. central bank will purchase debt maturing between 2010 and 2011. The buybacks have supported the market as the fed acts as buyer of last resort in an effort to cap borrowing rates on everything from corporate bonds to consumer credit-card and mortgage debt. Economic news tomorrow will focus on PPI and initial jobless claims.

Commentary/New Issues

Corporate:
$3.0 BLN, American Express, A3/BBB+, 2 part $1.25 BLN, 7.250%, 5/20/14, +530bp; $1.75 BLN, 8.125%, 5/20/19, +505bp
$2.5 BLN, JPMorgan Chase, 4.65%, 6/1/14, Aa3/A+, +275.bp
$261.45 MM, Utah Transit Authority, 5.937%, 6/15/39, Aa3/AAA, +185bp

ABS:
Nothing

Agency:
$5.0 BLN, Fannie Mae, 2.50%, 5/15/14, +56bp

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 ground Tuesday, recovering from earlier losses, amid rising concerns that the rally in equities may be ending, increasing the appeal of U.S. debt as an alternative asset. Bonds were also supported by the Federal Reserve’s purchase of short-term debt. The U.S. central bank bought $6.007 billion in bonds maturing 2012 and 2013 during the Tuesday session–the second of three such operations scheduled for this week, part of the Fed’s plan to buy $300 billion in Treasuries by autumn to keep a lid on lending rates. Bonds started the U.S. session in the red, as traders digested Fed Chief Ben Bernanke’s remarks that he’s encouraged by the response to “stress tests” for 19 major financial institutions recently administered by the government. He said the bank’s response will have the effect of boosting confidence in the financial sector. Treasuries also played off a government report showed the U.S. trade deficit for March widened to $27.6 billion, an amount not as large as some economists had been looking for. The smaller deficit will make the first-quarter gross domestic product reading less negative. The financial health of Social Security and Medicare, the two main safety nets for American retirees and the elderly, is declining as the recession cuts payroll tax contributions just as the baby-boom generations begins to retire. Economic news for tomorrow will highlight retail sales and business inventories.

Commentary/New Issues

Corporate:
$750 MM, Sempra Energy, 6.50%, 6/1/16, Baa1/BBB+, +387.5bp
$750 MM, Occidental Petroleum, 4.125%, 6/1/16, A2/A, +160bp
$500 MM, Illinois State Toll Highway Authority, Aa3/AA-, 2 part $100 MM, 5.293%, 1/1/24, +210bp; $400 MM, 6.184%, 1/1/34, +200bp
$425 MM, Ameren Corp, 8.875%, 5/15/14, Baa3/BB+, +698.2bp

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.

Shares: 300,000,000

$ Amount: $1,425,000,000

CREDIT MARKETS

Treasuries:
Treasury prices rose Monday, pushing yields lower, with the Federal Reserve stepping in once again to purchase long-term debt in the hopes of stimulating lending by making borrowing costs affordable. Bonds also played off a broad decline in U.S. stocks, increasing the appeal of debt, as well as a lack of government issuance for two weeks. To date, the Fed has purchased $91.88 billion in Treasuries, well on its way to its goal of $300 billion by the autumn. The Fed has two more buyback operations scheduled this week. Treasuries were on a tear today in largely corrective and light trade and went after some key levels into the close as the 10-year lead the way and took out the 3.175 percent point post session. The curve was working well flatter with the late session seeing the 2-10-year yield spread headed out near 227.9. Gold is laboring under profit taking, as other commodities, after recent sizable run-ups with spot now 913.84. Crude was also slipping after taking a few shots at unchanged heading out at 58.50. Also drawing attention of bond traders, Microsoft Corp is selling $3.75 billion in its first-ever long-term bond offering. The AAA-rated software giant is pricing 5-year, 10- and 30-year debt. Tuesday has to nonevent reports with the trade balance and treasury budget.

Commentary/New Issues

Corporate:
$3.75 BLN, Microsoft, Aaa/AAA, 3 part $2.0 BLN, 2.90%, 6/1/14, +95bp; $1.0 BLN, 4.20%, 6/1/19, +105bp; $750 MM, 6/1/39, +105bp(further details to follow)
$1.0 BLN, US Bancorp, 4.20%, 5/15/14, Aa3/AA, +215bp
$1.0 BLN, Allstate, A3/A-, 2 part $300 MM, 6.20%, 5/16/14, +420bp; $700 MM, 7.45%, 5/16/19, +430bp
$700 MM, Becton Dickinson, A2/AA-, 2 part $500 MM, 5.00%, 5/15/19, +190bp; $250 MM, 6.00%, 5/15/39, +190bp
$350, Southern Company, 4.15%, 5/15/14, A1/A, +212.5bp

ABS:
Nothing

Agency:
Nothing

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 New Issues larger than $250mm.

CREDIT MARKETS

Treasuries:
Treasury prices rose Friday, pushing long-term yields down from five-month highs, after bond investors seized on the downbeat aspects of the Labor Department’s monthly employment report, raising the appeal of the relative safety of U.S. debt. The headline figure job loss figure was better than economists had expected, with the economy losing 539,000 jobs in April. The data were helped by outsized government hiring for the census. The unemployment rates rose to the highest in 26 years, 8.9 percent last month, from 8.5 percent. In corporate bond trading, the spotlight was on Bank of America and Morgan Stanley both selling debt backed by their own credit Friday, meeting a condition to return money borrowed from the government. Declines in bond prices have pushed up yields just as the Fed is buying U.S. debt to drive down borrowing costs and spur the economy out of the deepest recession in half a century. The central bank scheduled a purchase on May 11 of Treasuries maturing from August 2026 to February 2039. It will be the 17th buy since the Fed began its six-month program in march to acquire up to $300 billion in U.S. debt. Economic news for the week will focus on CPI, PPI, initial jobless claims, University of Michigan and retail sales.

Commentary/New Issues

Corporate:
$3.0 BLN, Bank of America, 7.375%, 5/15/14, A2/A, +537.5bp
$750 MM, CBS Corp, Baa3/BBB, 2 part $400 MM, 8.20%, 5/15/14, +635.5bp; $350 MM, 8.875%, 5/15/19, +596.2bp
$425 MM, Hasbro Inc, 6.125%, 5/15/14, Baa2/BBB, +400bp

ABS:
Nothing

Agency:
Nothing

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 New Issues larger than $250mm.

Coupon: 6.75%

Maturity: 6/1/2016

Deal Size: $1,250,000,000

Rating: A2/A-

CREDIT MARKETS

Treasuries:
Treasury prices remained lower Thursday, pushing long-term yields to their highest levels in more than five months, as the Treasury Department had to pay more than anticipated to sell $14 billion in 30-year bonds, the last major auction of the week. The Treasury sold the 30-year bond to yield 4.288 percent, higher than traders expected. The amount matched what was sold in February as the largest on record. Investors offered $2.14 for every dollar of debt available, compared to an average of $2.15 at the last four auctions. Indirect bidders, banks, bought 33 percent of the auction, compared with 35.3 percent on average at the last four. Direct bidders bought 4.1 percent. The proportion taken by direct bidders has been unusually high in the last few auctions.
The government’s bond sales have received extra attention in recent months as an indication of how well the U.S. can finance all the stimulus and financial-market stability programs that have been implemented to bring the nation’s economy around. Treasuries extended their decline after the Labor Department said initial claims for unemployment benefits fell in the latest week to 601,000, the lowest level since January, signaling a peak may have been passed. Economic news tomorrow will focus on the non-farm payroll report that will show that 600,000 jobs were lost in April.

Commentary/New Issues

Corporate:
$6.0 BLN, Dow Chemical, Baa3/BBB-, 3 part $1.75 BLN, 7.60%, 5/15/14, +550bp; $3.25 BLN, 8.55%, 5/15/19, +525bp; $1.0 BLN, 9.40%, 5/15/39, +512.5bp
$1.0 BLN, Kinder Morgan Energy Partners, Baa2/BBB, 2 part $300 MM, 5.625%, 2/15/15, +350bp; $700 MM, 6.85%, 2/15/20, +362.5bp
$350 MM, Corning Inc., Baa1/BBB+, 2 part $250 MM, 6.625%, 5/15/19, +337.5bp; $100 MM, 7.00%, 5/15/24, +385bp

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.