CREDIT MARKETS

Treasuries:
Treasuries headed for their first two-month gain this year amid speculation that a six-month stock rally outpaced prospects for economic growth, increasing investor demand for the relative safety of US government debt. Yields on US securities declined today as global stocks dropped. Demand for treasuries also rose on the last day of the month as investors bought US debt to match changes in the indexes they use to gauge the performance of their portfolios. Yields on the two-year note fell four basis points to 0.97 percent, the lowest since August 21. As the benchmark ten-year note fell the same four basis points to 3.40 percent. The 30-year stayed relatively the same falling one basis point to 4.18 percent. The US government and the Federal Reserve have spent, lent or committed more than $12 trillion in a bid to revive the economy and credit markets. Policy makers said they would let a $300 billion program to buy long-term Treasuries expire in October, even as they pledged to keep interest rates “exceptionally low” for an extended period. the benchmark rate is a range of zero to 0.25 percent. Debt investors can’t see a recovery strong enough to spur central bank interest rates higher any time soon, especially with President Obama’s administration forecasting that unemployment in the US will rise above 10 percent.

Commentary/New Issues

Corporate:
$650 MM, Republic Services, 5.50%, 9/15/19, BAA3/BBB, +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 FINRA/SIPC, and/or its affiliates may be a participant in offerings mentioned and therefore offerings will be subject to availability. All statistical data is sourced from Bloomberg Financial Markets.
All statistical data is sourced from Bloomberg Financial Markets.

CREDIT MARKETS

Treasuries:
Treasuries fell, with two year notes sliding the most in two weeks, as existing home sales surges in July and Federal Chairman Bernanke said the global economy is “beginning to emerge” from recession. Home purchases climbed 7.2 percent to a 5.24 million annual rate, more than forecasted. The yield on the two year note rose 9 basis points, 0.09 percentage point, to 1.09. The ten year notes rose 16 basis points with a 3.57 yield at the close on Friday. The thirty year was up more then 10 basis points, with a 4.37 yield late on Friday. Economists forecast the US will emerge from the worst recession since the 1930s, with the economy in the third quarter expanding at a 2.2 percent annual rate. The Fed more than doubled the size of its balance sheet in the past 12 months to $2.06 trillion by purchasing Treasuries and other securities to thaw credit markets that froze last year. The US will sell $42 billion of two-year notes, $39 billion of five-year notes, and $28 billion of seven-year notes on three consecutive days beginning Aug 25. Economic news to watch next week: Consumer Confidence, House Price Index, and New Home Sales.

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 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:
Treasuries gained for a second day as the U.S. announced plans to sell $109 billion of two-year, five-year and seven-year notes in three auctions next week, equal to the amount of those maturities sold last month. Yields on the ten-year notes traded near the lowest levels in five weeks. The debt fell earlier after a gauge of manufacturing in the Philadelphia region unexpectedly expanded for the first time in a year. The US will sell $88 billion in bills maturing in three months, six months and 52 weeks. The yield on the ten-year note fell four basis points, or .04 percentage point, to 3.42 percent. Five-year notes and two-year notes were unchanged in price, yielding 2.42 percent and 1 percent respectively. Buying of government securities associated with corporate bond issues pricing bolstered the 30-year Treasury bond. Aside from the 30-year’s gains, however, Treasuries trade was generally very quiet. When the US raised $75 billion last week, an investor class that includes foreign central banks purchased a record amount of three-year notes, the biggest share of ten-year notes since 2005 and almost half of the 30-year bonds sold. China is America’s largest creditor, holding $776.4 billion of the $6.78 trillion in marketable US debt.

Commentary/New Issues

Corporate:
$1.5 B, American Express Credit Corp, 5.125%, 8/25/14, A3/BBB+, +275bp
$1.0 BLN, News America, Baa1/BBB+, 2 part $400 MM, 5.65%, 8/15/20, +223bp; $600 MM, 6.90%, 8/15/39, +265bp
$500 MM, Yum Brands, Baa3/BBB-, 2 part $250 MM, 4.25%, 9/15/15, +187.5bp; $250 MM, 5.30%, 9/15/19, +187.5bp

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.

CREDIT MARKETS

Treasuries:
Treasuries fell for the first time in four days as stocks gained. The Commerce Department said housing starts fell 1 percent to a seasonally adjusted annual rate of 581,000 units, well below market expectations for 600,000 units. And while U.S. housing starts were unchanged in July, building permits for single-family homes rose 5.8%, marking the fourth increase in a row and a strong sign that building activity may have finally stopped plunging. The government reported producer prices fell 0.9 percent in July, slightly less than the 1-percent drop expected by economists. But the core producer price index, which excludes volatile food and energy prices, fell 0.1 percent, while economists expected it to gain 0.1 percent. Earlier, hopes for the global economy were lifted by a report suggesting German financial professionals grew more optimistic in August. No major economic news for tomorrow.

Commentary/New Issues

Corporate:
$2 BLN, Royal Bank of Scotland, 4.875%, 8/25/14, Aa3/A+, +250bp
$400 MM, Air Products & Chemicals, 4.375%, 8/21/19, A2/A, +88bp
$350 MM, Boardwalk Pipeline, 5.75%, 9/15/19, Baa1/BBB, +225bp

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.

CREDIT MARKETS

Treasuries:
Treasury debt prices climbed on Monday, with the 30-year bond gaining more than a point as stocks fell sharply, burnishing the safe-haven appeal of government debt. The benchmark 10-year notes were trading 25/32 higher for a yield of 3.48 percent, down from 3.58 percent late on Friday. Yields fell as far as 3.47 percent on Monday, the lowest in nearly a month. Bonds fleetingly pared gains after the New York Federal Reserve’s “Empire State” general business conditions index for August rose by much more than expected, with the gauge of the manufacturing sector showing growth for the first time since April 2008. The market showed little reaction to data showing net overall capital outflows from the U.S. fell to $31.2 billion in June from May’s $65.7 billion outflow. China cut its U.S. Treasury holdings while Japan increased its holdings. Shanghai stocks slumped 5.8% Monday, suffering their biggest percentage drop so far this year, as lower commodity prices, persistent worries over tightening in bank loans and weak economic data dampened investor sentiment. The Federal Reserve bought $7.016 billion of Treasuries, making most of its purchases in debt maturing in five years, offering some further support for government debt prices. The day ahead has PPI, housing starts and building permits.

Commentary/New Issues

Corporate:
$500 MM, Baxter Inernational, 4.50%, 8/15/19, A3/A+, +105bp

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.

CREDIT MARKETS

Treasuries:
Treasuries surged as a report showing an unexpected drop in retail sales suggested inflation remains restrained, helping to spur higher then forecasted demand at a record $15 billion auction of 30-year bonds. The benchmark 30-year bond rallied the most in over three weeks as the debt drew a yield of 4.541 percent, below the 4.556 percent forecasted. The 30 year yield fell 12.2 basis points, or 0.122 percent percentage point, to 4.42 percent. The 10-year note fell 11 basis points, or 0.11 percentage point, to 3.61 percent. it touched 3.58 percent, the lowest level in over a week. Yesterday’s scale is the largest-ever offering of the 30-year bond, the prior record being the $14 billion sold in May and February and in February 2006. Indirect bidders, a class of investors that includes foreign central banks, bought 48.1 percent of the notes at today’s auction.

Commentary/New Issues

Corporate:
$600 MM, Blackstone Holding Finance, 6.625%, 8/15/19, A/A+, + 312.5bp

ABS:
Nothing

Agency:
$3BLN, Fannie Mae, 3.00%, 9/16/14, +43.5bp

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:
Government bonds fell as Fed expected to stop buying Treasuries after program expires as early recovery in housing, mortgage markets takes away urgency. The drop in Treasuries sent the 10-year note’s yield up 0.04 percentage point to 3.72 percent. The Fed expects to have purchased the full amount of its $300B by October. The Federal Reserve’s program to buy $300 billion in long-term government bonds has been controversial and a less-than-resounding success in keeping long-term rates down. Many observers say the purchase program threatens an inflationary spiral. The Fed also said it would continue to purchase up to $1.25 trillion in mortgage-backed securities and other debts from Fannie Mae and Freddie Mac in an effort to keep mortgage rates down to stimulate the housing market.

Commentary/New Issues

Corporate:
$500 MM, Discovery Communications, 5.625%, 8/15/19, BAA2/BBB-, +200bp
$600 MM, Howard Hughes Medical Inst, 3.45%, 9/1/14, AAA/AAA, +15bp

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.

CREDIT MARKETS

Treasuries:
Treasury prices advanced on Tuesday, pushing yields down for a second day, after the government received solid demand at the first of $75 billion in debt sales this week. The auction is the first leg of the Treasury Department’s quarterly refunding, traditionally its largest auction slate. Bidders offered $2.89 for every dollar of debt sold, the highest since November and compared with an average of $2.63 at the last four sales. Indirect bidders bought 62.5 percent of the sale. The closely watched group took 54 percent of the last sale in July after taking an average of 39.9 percent at the previous three auctions. The government will also sell a record $23 billion in 10-year debt on Wednesday and $15 billion in 30-year bonds on Thursday, also the largest ever. Treasuries were also supported by data showing second-quarter productivity jumped 6.4 percent and unit labor costs fell 5.8 percent, indicating a lower risk of inflation. The curve was ground around to head generally flatter with the 2-10 year yield spread now at 250. Tomorrow’s economic news will focus on the trade balance for June, the Treasury budget and the FOMC statement.

Commentary/New Issues

Corporate:
$1.0 BLN, Deutsche Bank AG, 3.875%, 8/18/14, AA1/A+, +128bp
$850 MM, PETRIT, 9.75%, 08/14/19, Baa3/BBB, +618.4bp
$600 MM, Chicago Water, 5.72%, 12/1/38, AAA/AAA, +125bp
$500 MM, Dominion Resources, 5.20%, 8/15/19, Baa2/A-, +150bp

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.

CREDIT MARKETS

Treasuries:
Treasury prices rose on Monday, pushing yields down from two-month highs reached after government data showed the economy lost the fewest jobs since last August. Prices remained higher to start the week after the Federal Reserve bought $6.6 billion of debt maturing in 2012 and 2013. The Fed has been fairly consistent in repurchasing similar amounts of debt in a given maturity range throughout its buyback operations. The last time the Fed bought from this sector, it purchased about $6.5 billion. Also leaving traders uncertain, the Federal Open Market Committee’s monetary-policy meeting begins on Tuesday. Analysts expect little change to Fed officials’ statements about leaving interest rates unchanged for some time. The government will auction $37 billion in 3-year on Tuesday, followed by $23 billion in 10-year debt and $15 billion in 30-year notes. The difference between 2-10 year yields was 2.55 percentage points, up from 2.45 percentage points a week ago, suggesting investors are demanding higher yields for longer maturities because of the threat inflation will pick up as the economy starts growing. Economic news for tomorrow will focus on wholesale inventories.

Commentary/New Issues

Corporate:
$1.5 BLN, GECC, 3.50%, 8/13/12, AA2/AA+, +212.5bp
$600 MM, Praxair Inc., 4.50%, 8/15/19, A2/A, +78bp
$500 MM, Hyatt Hotels, Baa1/BBB, 2 part $250 MM, 5.750%, 8/15/15, +312.5bp; $250 MM, 6.875%, 8/15/19, +312.5bp

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.

CREDIT MARKETS

Treasuries:
Treasury prices dropped on Friday, pushing yields to their highest in almost two months, after the non-farm payroll report said that last month the U.S. economy lost the fewest jobs since last August and the unemployment rate unexpectedly declined. The data added to evidence that the worst of the recession has passed and encouraged investors to seek assets that are riskier than Treasuries. The U.S. economy lost 247,000 jobs in July and the unemployment rate declined to 9.4 percent from 9.5 percent in June. Payrolls for May and June were revised to reflect less negative numbers. Interest-rate futures on Friday indicated a slightly higher chance that the Federal Reserve will raise its target overnight borrowing cost for banks as soon as the end of this year.
The simultaneous advance today in the Dow Jones Industrial Average and the Dow Jones Transportation Average to their highest levels of the year is a bullish sign for the U.S. stock market among traders who use charts to make forecasts. Economic news for next week will focus on the FOMC meeting, initial jobless claims, CPI, advance retail sales, capacity utilization and U of M confidence.

Commentary/New Issues

Corporate:
$300 MM, Hospital Property Trust, 7.875%, 8/15/14, Baa2/BBB, +530.3bp

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.