CREDIT MARKETS
Treasuries:
Treasury 10-year notes were little changed as confidence among US consumers unexpectedly fell in September, spurring concern the pace of recovery from the worst slump since the Great Depression will be slow. The yield on the 10-year note rose one basis points to 3.29 percent, after earlier touching 3.34 percent. The difference between the 2- and 10-year yields shrank to 2.30 percentage points amid speculation the Fed will remain reluctant to raise interest rates. The spread widened to a record 2.75 percentage points on May 27 amid concern surging debt sales would overwhelm the Fed’s efforts to cap borrowing costs. The unemployment rate rose in September and household purchases jumped in August. The central bank bought $3.545 billion of Treasuries maturing from August 2012 to September 2013, part of its effort to cap borrowing costs. The fed has bought $282.764 billion of US debt through the $3000 billion buy back program, which is scheduled to end in October.

Commentary/New Issues

Corporate:
$750 MM, Volvo AB, 5.95%, 04/01/15, BAA2/BBB, +365bp
$1B, L-3 Communications, 5.20%, 10/15/19, Baa2/BBB-, +195bp
$5B, Citigroup, Muti-Tranche: $1.25B, 1.25%, 11/15/11, AAA/AAA, +35.2bp; $250MM, 11/15/11, -3bp, $2.5B 1.875%, 11/15/12, +46.5bp; $1B, +0%, 11/15/12, -0bp
$300 MM, Enetergy Gulf States, 5.59%, 10/01/24, BAA1/BBB+, +230bp

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 offerings mentioned and therefore offerings will be subject to availability.
All statistical data is sourced from Bloomberg Financial Markets.

CREDIT MARKETS

Treasuries:
Treasury two-year notes fell the most in a week after as a gauge of US consumer confidence rose this month more than estimated, adding to evidence the economy is recovering from recession. The difference in yields between two- and ten-year notes narrowed for a fourth day to 2.34 percentage points. The yield on the two-year rose five basis points to 0.98 percent. Longer-maturity debt gained as stocks fell. Ten-year note yields dropped five basis points to 3.34 percent. Yields on the 30-year bonds dropped eight basis points to 4.09 percent. A $40 billion five-year sale on Sept 23 drew bids for 2.4 times the amount of debt offer, versus an average of 2.23 at the prior 10 auctions. The Treasury’s $43 billion sale of two-year notes on Sept. 22 attracted bids for 3.23 times the available securities, the highest since 2007. Economic news for this week: Initial Jobless Claims, Change in Non-Farm Payrolls, and Pending Home Sales.

Commentary/New Issues

Corporate:
$1B, Total Capital SA, 3.125, 10/02/15, AA1/AA, +88bp
$350MM, Unum Group, 7.125%, 9/30/16, BA1/BBB-, +416.5bp

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 offerings mentioned and therefore offerings will be subject to availability.
All statistical data is sourced from Bloomberg Financial Markets.

CREDIT MARKETS

Treasuries:
Treasuries rose for a third day as existing home sales unexpectedly fell in August, driving stronger than-forecast demand at a record $29 billion sale of seven-year notes. The notes sold yesterday, in the last of this week’s three auctions totaling $112 billion, drew a yield of 3.005 percent, compared with a forecast of 3.047 percent. The bid-to-cover ratio was 2.79, compared to an average of 2.48 at the past seven auctions. Indirect bidders, a class of investors that includes foreign banks, bought 61.7 percent of the notes, compared to the average of the past seven sales of 46.2 percent. Government securities rose earlier as purchases of existing home sales dropped 2.7 percent in August to 5.1 million annual rate, the second highest level in the last 23 months. Yesterday’s offering of the seven-year notes follows a record $40 billion fiver-year note auction Wednesday, and $43 billion auction of two year on Tuesday. Yesterday as well 10-year dropped 4 basis points to end 3.37 percent.

Commentary/New Issues

Corporate:
$1.1B, Enterprise Products, 2-Part: $500M, 5.25%, 01/21/20, BAA3/BBB-, +195bp; $600MM, 6.125%, 10/15/39, +200bp
$500MM, Kroger Co, 3.90%, 10/01/15, Baa2/BBB-, +158bp
$2B, Wells Fargo, 3.75%, 10/1/14, A1/AA-, +145bp
$1.1B, Viacom inc, 2-Part: $250MM, 4.25%, 9/15/19, Baa3/BBB, +195bp; $300MM, 5.625%, 9/15/19, +200bp

ABS:
Nothing

Agency:
$1B, Freddie Mac, 2.215%, 9/21/12, +21bp

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 offerings mentioned and therefore offerings will be subject to availability.
All statistical data is sourced from Bloomberg Financial Markets.

CREDIT MARKETS

Treasuries:
Treasuries rose for a second day after Federal Reserve officials said they’ll end a $1.45 trillion mortgage-bond purchase program later than scheduled and will keep interest rates at a record low for extended period. Shorter-maturity debt led the gains as central bankers reiterated their pledge to keep rates accommodative, while saying the US economy has started to recover from recession. The yield on the benchmark 10-year note fell five basis points to 3.41 percent. The record $40 billion in five-year notes sold today drew a yield of 2.47 percent, compared with a forecast of 2.463 percent. The bid to cover ratio, was 2.40 compared with an average of 2.23 at the last 10 auctions. The Treasury will sell a record $29 billion today in debt. On the two-year note offered on Tuesday, have declined 8 basis points from the 1.034 percent drawn at the sale.

Commentary/New Issues

Corporate:
$500MM, Nat’l Agricultural Coop Fed, 5.00%, 9/30/14, A2/A, +268bp
$400MM, Vornado Realty, 7.875%, 10/1/39, Baa2/BBB, +7.875bp
$1B, 2-Part: $500MM, 3.75%, 9/30/15, Baa1/A-; +140bp; $500MM, 4.875%, 3/30/20, +150bp
$300M, Arrow Electronics, 6.00%, 4/1/20, BAA3/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 FINRA/SIPC, and/or its affiliates may be a participant in the offerings mentioned and therefore offerings will be subject to availability.
All statistical data is sourced from Bloomberg Financial Markets.

CREDIT MARKETS

Treasuries:
Treasuries rose after the sale of a record $43 billion in two-year notes drew the strongest demand in two years amid expectations the Federal Reserve will keep rates steady at the conclusion of its policy meeting today. The bid-to-cover ratio, was 3.23, the most since Sept 2007 and compared with an average of 2.65 at the past 10 auctions. The two-year note yield fell three basis points, or 0.03 percentage pint, to 0.95 percent.
Indirect bidders, a class of investors that includes foreign central banks, bought 45.2 percent of the auction yesterday. The US will sell $40 billion of five-year debt today and $29 billion tomorrow of the seven-year. The five year fell three basis points to 2.42 percent before tomorrows auction. The central bank has purchased $289.219 billion of US debt since the buy back program began in March, and plans to finish the $300 billion in October.

Commentary/New Issues

Corporate:
$500MM, BB&T, 3.375%, 9/15/13, A1/A, +140bp
$1B, GE Capital, 2.00%, 9/28/12, AAA/AAA, 100.232bp
$500MM, Thomson Reuters, 4.70%, 10/15/19, Baa1/A-, +130bp
$400MM, PEFCO, 3.05%, 10/15/14, AAA/AA+, +63.75bp

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 offerings mentioned and therefore offerings will be subject to availability.
All statistical data is sourced from Bloomberg Financial Markets.

Shares: 6,974,036

$ Amount: $195,273,008

CREDIT MARKETS

Treasuries:
Treasury two-year notes fell the most in three weeks as stocks gained and industrial production rose in August more than forecast, damping demand for the relative safety of US debt. Two-year notes declined for a fourth day as output at US factories, mines and utilities climbed 0.8 percent last month. The yield on the two-year note rose five basis points or 0.05 percentage point, to 0.98 percent. Ten-year note yields rose two basis points to 3.47 percent. The rate increased as much as four basis points and declined as much as seven during the day. Industrial production gained 1 percent in July, more than previously estimated. The government will announce today the amounts of 2-,5- and 7- year notes will sell next week.

Commentary/New Issues

Corporate:
$1B, Export Development Canada, 1.75%, 9/24/12, AAA/AAA, +28.3bp
$1.5B, Austria, 2.00%, 11/15/12, AAA/AAA, +51.7bp
$491.77MM, State of Utah; 2-Part: $74.145MM, 4.154%, 7/1/19, AAA/AAA, 4.154bp; 417.615MM, 4.554%, 7/1/24, 4.554bp
$3B, Morgan Stanley, 5.625%, 9/23/19, A2/A, +225bp
$600MM, GECC, 4.375%, 9/21/15, AA2/AA+, +200bp
$1.5B, Exelon Generation, 2-Part: $600MM, 5.20%, 10/1/19, A3/BBB, +175bp; $900MM, 6.25%, 10/1/39, +200bp
$500MM, PNC Funding Corp, 4.25%, 9/21/15, A3/A, +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 FINRA/SIPC, and/or its affiliates may be a participant in the offerings mentioned and therefore offerings will be subject to availability.
All statistical data is sourced from Bloomberg Financial Markets.

CREDIT MARKETS

Treasuries:
Treasuries surged after a $12 billion sale of 30-year bonds drew the strongest demand since November 2007, the last of three auctions this week that each attracted more investors than forecast. Thirty-year bonds rallied the most in almost six months as the debt drew a yield of 4.238 percent, the lowest level since March and below the 4.289 percent forecast. Wednesday’s $20 billion 10-year sale also drew a lower-than-forecast yield. The 30-year bond fell 12 basis points to 4.20 percent. The 10-year bonds also fell 11 basis points to 3.36 percent, as the 2-year bonds fell 3 basis points to 0.89 percent. The difference between 2- and 30-year Treasury yields is at 333 basis points, about three times the historical average and up from 191 basis points at the end of 2008. The strong auction results this week helped dampen concern that weakness in the greenback, which today declined to the weakest level against the Euro this year, would drive investors away from dollar-denominated assets.

Commentary/New Issues

Corporate:
$1.5B, Pemex, 4.875%, 3/15/15, BAA1/BBB+, +275bp
$1B, Metlife Global Funding I, 2.875%, 9/17/12, AA2/AA-, +160bp
$2.75B, Commonwealth Bank of Australia, 2-Part: $1.50B, 2.90%, 9/17/14, AAA/AAA, +64.2bp; $1.25B, 3ML +28, 9/17/14, AAA/AAA, +28bp
$1.5B, Prudential Financial, 2-Part: $600M, 3.635%, 9/17/12, BAA2/A, +225bp; $900M, 4.750%, 9/17/15, BAA2/A, +250bp
$1.75B, IADB, 3.875%, 9/17/19, AAA/AAA, +48bp

ABS:
Nothing

Agency:
$3B, FHLB, 1.625%, 9/26/12, AAA, +30bp

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.

Coupon: 3.75%

Maturity: 10/1/14

Deal Size: $2,000,000,000

Coupon: 8.70%

Maturity: 10/1/14

Deal Size: $1,000,000,000