CREDIT MARKETS

Treasuries:
Treasury two-year notes advanced, pushing the yield to its lowest level in 11 months, after Dubai’s proposal to delay debt payments sparked a global slide in stocks and higher-yielding assets. Two- and 10-year Treasury yield fell the most this month after the yen strengthened earlier to a 14-year high vs. the dollar, boosting speculation the Bank of Japan will intervene in the currency markets. The yield on the benchmark 2-year note fell five basis points to 0.68 percent. The 10-year securities fell ten basis points, to 3.21 percent. Demand for Treasuries was strong at sales of 2-, 5-, and 7-year debt this week as Fed policy makers indicated the benchmark lending rate would remain near zero. Dubai World, the government investment company burdened by $59 billion of liabilities will ask all creditors for a standstill agreement as it negotiates to extend debt maturities.
Economic news: Pending Home Sales, Construction Spending, Initial Jobless Claims and Unemployment Rate.

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

CREDIT MARKETS

Treasuries:
Treasuries gained as the Federal Reserve said interest rates would remain near zero for an extended period and a record $42 billion sale of five-year debt drew the strongest demand in over two years. The bid-to-cover ratio at yesterday’s sale was 2.81, the highest since September 2007. The yield on the current five-year note declined four basis points, or 0.04percentage points, to 2.09 percent. The 10-year note yields dropped five basis points to 3.31 percent. The Fed minutes showed that while policy makers agreed that the chances of excessive risk-taking and a dislodging of expectations for low inflation were relatively low, they would remain alert to these risks. Treasuries of all maturities have gained 1.15 percent since the Fed’s Nov. 4 meeting, compared with a 1.17 percent return for high-yield debt and a 1.58 percent rise in investment-grade corporate bonds. Today the Treasury plans to sell $32 billion of 7-year debt, for a record $118 billion sales this week.

Commentary/New Issues

Corporate:
$3B, NIBC BANK, 2-Part: AAA/AAA: $1B, 3ML+38, 12/02/14, 3ML+38bp; $2B, 2.80%, 12/02/14, +69bp
$300M, FMC CORP, 5.20%, 12/15/19, BAA2/BBB+, +190bp

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 were little changed after the US sold a record-tying $44 billion of 2-year debt at the lowest yield ever, the first of three note sales this week totaling a record $118 billion. The 2-year securities drew a yield of 0.802 percent, compared to the forecast of 0.786 percent. The bid-to-cover ratio was 3.16 compared to 3.63 at the previous auction. The average at the last two auctions was 2.92. 2-year yields last week fell to the lowest level this year as the Federal Reserve signaled it may keep interest rates near record lows for longer. The yield on the current 2-year note rose one basis point, or 0.01 percentage point, to 0.73 percent. Both 10 year and 30 years remained unchanged at 3.36 and 4.29 percent respectively. The Treasury is scheduled to sell $42 billion of 5-year securities Tuesday and $32 billion of debt maturing in 7-years on Wednesday, both are record amounts.

Commentary/New Issues

Corporate:
$600M, GRUPO TELEVISA, 6.625%, 1/15/40, BAA1/BBB+, +245bp
$500M, AEGON, 4.625%, 12/1/15, A3/A-, +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:
Treasury two-year note yields touched the lowest level this year on concern the rally in risky assets has outpaced growth prospects and as Federal Reserve officials signaled interest rates will stay low. Longer-maturity yields rose. Three-month bill rates turned negative on Friday for the first time since last year’s credit freeze as the 62 percent rally in the Standard & Poor’s 500 Index from a 12-year low in March pushed valuations to about 22 times its companies’ reported earnings, the highest level since 2002. Two-year Treasuries headed for the biggest weekly gain this month amid speculation financial institutions are buying the safest assets to improve balance-sheet quality as 2009 draws to a close. The two-year Treasury note yield touched 0.67 percent, the lowest level since December. It fell nine basis points on the week, the most since the five days ended Oct. 30, to 0.72 percent. The three-month bill rate was 0.005 percent, down five basis points for the week. The 10-year yield fell six basis points to 3.36 percent. Economic news: Existing Home Sales, GDP, Consumer Confidence, Personal Spending, Durable Goods Orders, Initial Jobless Claims.

Commentary/New Issues

Corporate:
$7B, ROYAL BANK OF SCOTLAND, AAA/AAA: $2B, 1.50%, 3/30/12, +80.5bp; $5B, FLOAT, 3/30/12, 3ML+26
$1.25B, TD AMERITRADE, 3-PT (3S,5S & 10S), BAA1/BBB+/BBB+, $250M, 2.95 %, 12/1/12, +175bp; $500M, 4.15%, 12/1/14, +200bp; $500M 5.60%, 12/1/19, +225bp
$5B, CDP FINANCIAL, 3-PT (5S, 10S & 30S) AAA/AAA, $2B, 3.00 %, 11/25/14, +83bp; $1.75B, 4.40%, 11/25/19, +105bp; $1.25B, 5.60%, 11/25/39, +130bp
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 three-month bill rates turned negative for the first time since financial markets froze last year on concern that the rally in higher-yielding assets has outpaced the prospects for economic growth. Investors were willing to pay the government to hold their money as stocks slid amid speculation the eight-month, 68-percent rally that drove the valuation of the MSCI World Index to the most expensive level in seven years already reflects forecasts for a 25-percent rebound in corporate earnings next year. Federal Reserve Bank of St. Louis President James Bullard yesterday said experience indicates policy makers may not start to increase interest rates until early 2012. The two-year note yield fell five basis points to 0.70 percent at 4:24 p.m. in New York, according to BGCantor Market Data. The 1 percent security due October 2011 rose 3/32, or 94 cents per $1,000 face amount, to 100 18/32. The yield touched 0.6759, the lowest since Dec. 19. It fell to an all-time low of 0.6044 percent on Dec. 17.

Commentary/New Issues

Corporate:
$500M, HARLEY DAVIDSON, 5.75%, 12/15/14, BAA1/BBB, +362.5bp
$312M, CAYMAN ISLANDS, 5.95%, 11/24/19, AA3/NR, +261.6bp
$250M, OAKTREE CAPITAL MGMT LP, 6.75%, 12/02/19, NR/A-, +360bp

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 fell after comments from Federal Reserve Bank of St. Louis President James Bullard that rates may not rise until early 2012 prompted traders to increase bets inflation will accelerate. The difference between 2- and 10-year note yields widened for the first time in five days as Bullard, in a speech in St. Louis, said that based on the past two recessions, the Fed’s “tightening campaign” may begin in the first half of 2012. A report showed the cost of living rose more than forecast in October and the U.S. prepares to announce today the amount of 2-, 5- and 7-year notes it will auction next week. The 10-year note yield rose four basis points to 3.37 percent. Two-year note yields, most sensitive to monetary policy, fell two basis points to 0.75 percent after earlier touching 0.7328 percent, the lowest level since Jan. 23. The yield curve widened six basis points to 2.62 percentage points.

Commentary/New Issues

Corporate:
$250M, PUBLIC SERVICE ELECTRIC & GAS, A2/A-, 5.375%, 11/01/39, +112bp
$600M, REPUBLIC SERVICES, BAA3/BBB, 5.25%, 11/15/21, +190bp
$400M, FORTUNE BRANDS, BAA3/BBB, 3.00%, 6/1/12, +230bp
$350M, TRANSATLANTIC HOLDINGS, BAA1/BBB+, 8.00%, 11/30/39, +394.1bp

ABS:
Nothing

Agency:
$1BLN, FANNIE MAE, 1.00%, 11/23/11

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.

Coupon: 5.375%

Maturity: 11/1/2039

Deal Size: $250,000,000

Rating: A2/A-

Type: Series I and J Baa2/A-

Amount: $743,310,000

CREDIT MARKETS

Treasuries:
Treasury 30-year bonds rose for a fourth day after a report showed producer prices increased less than forecast in October, confirming the Federal Reserve’s outlook for subdued inflation. Longer-term government debt extended gains posted yesterday after Fed Chairman Ben S. Bernanke indicated in a speech that low inflation will allow policy makers to keep interest rates near zero for an extended period. Foreign purchases of U.S. debt totaled $44.7 billion in September compared with purchases of $28 billion a month earlier. The 30-year bond yield fell two basis points to 4.26 percent. China remained the biggest foreign holder of U.S. Treasuries, after its holdings rose $1.8 billion to $798.9 billion, according to data from the Treasury Department’s Treasury International Capital report. Japan, the second-largest holder, increased its holdings $20.3 billion to $751.5 billion.

Commentary/New Issues

Corporate:
$500M, AMB PROPERTY, 2-PT: BAA1/BBB, $250M, 6.125%, 12/1/16, +337.5bp; $250M, 6.625%, 12/1/19, +337.5bp
$500M, VODAFONE, BAA1/A-, 3.375%, 11/24/15, +135bp
$300M, PEFCO, AAA/AA+, 4.30%, 12/15/21, 4.373%, +105bp
$500M, US BANCORP, AA3/A+, 2.875%, 11/20/14, +80bp
$1.2B, BOEING, 2-PT, A2/A/A+, $700M 1.875%, 11/20/12, +80bp; $500M, 3.75%, 11/20/16, +115bp
$2B, MORGAN STANLEY, A2/A/A, 4.20%, 11/20/14, +205bp

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.

Coupon: 1.875%

Maturity: 11/20/2012

Deal Size: $700,000,000

Rating: A2/A