CREDIT MARKETS

Treasuries:
Treasuries finished lower on Monday, erasing earlier gains and sending yields higher, as the market braced for the Treasury’s raising of $65 billion in funding this week. Bonds had gained earlier, boosted by a downgrade of Ireland’s credit rating and concerns over the future of the government led by U.K. Prime Minister Gordon Brown, which led some investors to seek the safety of U.S. government bonds. Bonds had gained earlier, benefiting from the latest round of purchases by the Federal Reserve, which bought $7.5 billion, mostly in notes expiring in 2015. Rising unemployment and ongoing weakness in the housing market are likely to prevent the central bank from increasing rates in 2009. The U.S. will auction $35 billion in three-year notes tomorrow, $19 billion in 10 year securities the next day, and $11 billion in 30 year bonds on June 11. The week ahead is fairly light in terms of economic data, but investors will key in on May retail sales on Thursday and the Federal Reserve’s Beige Book of economic conditions on Wednesday.

Commentary/New Issues

Corporate:
$500 MM, Pacific G&E, 6/10/10, +3ML+95bp

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 FINRA/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 GG1-GG2 Aa3/AA+

Amount: $500,000,000

CREDIT MARKETS

Treasuries:
Treasury prices declined Thursday, pushing yields up to near the highest since November, after Labor Department data showed signs of improvement in the employment scene that fueled hopes the worst of the recession is over. A more positive outlook for the economy is detrimental to bonds because it makes the relative safety of U.S. debt less attractive as an investors turn to riskier but potentially more lucrative vehicles. A separate report Thursday said productivity in the U.S. economy improved by 1.6 percent in the first quarter, more than previously estimated. Also weighing on U.S. debt, the Treasury Department said it will sell $35 billion in 3-year notes on June 9, followed by $19 billion in 10-year debt the next day. It will also auction $11 billion in 30-year bonds on June 11. The curve was sent well steeper with the 2 - 10 year yield spread out at 276bp. The “whispers” surrounding payrolls have been leaning toward a less-awful report (under -500K) and today’s better jobless claims and continuing claims fed the rumor beast. Gold and crude were back on the rally wagon, with spot running 978.22 and oil futures closed at 68.81.

Commentary/New Issues

Corporate:
$2.5 BLN, Express Scripts, Baa3/BBB, 3 part $1.0 BLN, 5.60%, 6/15/12, +375bp; $1.0 BLN, 6.25%, 6/15/14, +375bp; $500 MM, 7.25%, 6/15/19 +362.5bp
$1.0 BLN, PNC Funding, A3/A, 2 part $400 MM, 5.40%, 6/10/14, +290bp; $600 MM, 6.70%, 6/10/19, +305bp
$350 MM, Harris Corp., 6.375%, 6/15/19, Baa1/BBB+, +275bp

ABS:
(priced) $500 MM, COMET 2009-A1, ABS
(announced) $500 MM, COMET 2009-A2, ABS

Agency:
Nothing

New Issues larger than $250mm. The fixed income offerings mentioned above are for informational purposes only. Toussaint Capital Partners, LLC, member FINRA/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 C Aa3/AA-

Amount: $314,435,000

CREDIT MARKETS

Treasuries:
Treasuries prices advanced Wednesday, sending yields lower, as Federal Reserve Chairman Ben Bernanke expressed concerns about the economic recovery and said inflation will remain low. Concerns about increasing government debt issuance and commodity-based inflation conspired to push long-term yields higher. Short-term yields have remained in a fairly tight range because they are more closely linked to the Fed’s target interest rate, which no one expects to rise any time soon. Acting as another supportive factor for Treasuries, the Federal Reserve Bank of New York bought $7.5 billion in U.S. debt maturing between 2016 and 2019, the latest in the central bank’s attempts to keep a lid on borrowing costs. Dealers offered $21.11 billion to be purchased. On the economic front, ADP Employment Services said private companies slashed more jobs in May than some economists had expected. The report on private-sector payrolls comes two days before the U.S. government’s closely watched monthly employment data. Also, the Institute for Supply Management reported that the non-manufacturing sector of the U.S. economy contracted at a slower pace in May, but it didn’t improve as much as economists had anticipated. Economic news will focus on initial jobless claims tomorrow.

Commentary/New Issues

Corporate:
$4.5 BLN, GMAC LLC, AAA, AAA; 2 part $1.0 BLN, 12/19/12, +3ML+0bp; $3.5 BLN, 2.20%, 12/19/12, +80.1bp
$2.5 BLN, Vodafone Group PLC, Baa1/A-, 2 part $1.25 BLN, 4.15%, 6/10/14, +175bp; $1.25 BLN, 6/10/19, +195bp
$350 MM, Owens Corning, 9.00%, 6/15/19, Ba1/BBB-, +570.1bp
$300 MM, Amerprise Financial, 7.30%, 6/28/19, A3/A, +375bp

ABS:
(announced) $500 MM, COMET 2009-A1, ABS

Agency:
Nothing

New Issues larger than $250mm. The fixed income offerings mentioned above are for informational purposes only. Toussaint Capital Partners, LLC, member FINRA/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 dropped Monday, pushing 10-year yields up the most in more than eight months, as U.S. stocks traded sharply higher amid increasing investor confidence that the worst of the financial and economic crisis is over. Ten-year note yields jumped as U.S. economic reports showed improvement in manufacturing and construction and as data indicated that consumers’ incomes and spending came in better than economists had expected. Personal income and consumer spending came in better during April than economists had forecast. The longer-term trend in the personal consumption expenditure — the government’s preferred inflation indicator — is pointing to inflation running at a rate higher than policy makers would like to see. Also pressuring Treasuries, the Institute of Supply Management’s index said U.S. manufacturing improved more than anticipated last month. The index rose to 42.8 from 40.1 in April, a reading above 50 signals contraction. Economic news for tomorrow will focus on pending home sales and U.S. vehicle sales.

Commentary/New Issues

Corporate:
$500 MM, Enterprise Products Operating, LLC, 4.60%, 8/1/12, Baa3/BBB-, +312.50bp

ABS:
(priced) $1.15 BLN, CHAIT 09-A4, ABS
(priced) $600 MM, FNMNT 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 FINRA/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 jumped Friday, pushing 10-year yields down the most since March, amid signs of continued strains on economic growth as well as the potential for further Federal Reserve involvement in the bond markets. Yields on the benchmark 10-year notes have jumped 31 basis points in May, the second consecutive monthly increase. They reached the highest since mid-November earlier this week, reversing a large part of the dramatic rally late last year in Treasury prices driven by investors clamoring for the relative safety of U.S. debt during the credit crisis.
Treasuries also tend to attract buyers on the last day of the month as many portfolio managers rebalance their holding to match benchmark indexes, which add in securities sold during the month. Aiding bond prices Friday was the government’s first revision to its data on gross domestic product for the first quarter, which showed the economy didn’t shrink as much as previously reported, but was not as much of an improvement as economists predicted. Economic news for the week will highlight personal income and spending, ISM manufacturing, unemployment rate and nonfarm payroll report.

Commentary/New Issues

Corporate:
Nothing

ABS:
(priced) $1.0 BLN, AMXCA 09-1, ABS
(pricing on monday) $600 MM, FNMNT 2009-1, ABS
(guidance) $350 MM, AHM Advance Trust 2009-ADV1, ABS

Agency:
Nothing

New Issues larger than $250mm. The fixed income offerings mentioned above are for informational purposes only. Toussaint Capital Partners, LLC, member FINRA/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 S-5 A1/AA-

Amount: $600,000,000

Coupon: 1.875%

Maturity: 5/7/12

Deal Size: $2,250,000,000

Coupon: 1.875%

Maturity: 5/7/12

Deal Size: $2,250,000,000