CREDIT MARKETS

Treasuries:
Treasury two-year note yields rose the most this year after the Federal Reserve restated its intention to withdrawal extraordinary stimulus measures put in place to lift the economy from recession. Bonds erased earlier gains after policy makers said they’ll cease buying mortgage-backed securities in March as planned and wind down other liquidity programs. Kansas City Fed President Thomas Hoenig dissented from the decision to keep interest rates at a record low for an “extended” period of time. The yield on the 2-year note rose 10 basis points to 0.90 percent. The yield climbed as much as 12 basis points, the largest increase since Dec. 31. Ten-year note yields rose 2 basis points to 3.64 percent. The difference between 2- and 10-year securities narrowed to 8 basis points to 2.73 basis points, the least since the start of January.

Commentary/New Issues

Corporate:
$2BN CIBC AAA/AAA 2.00% 2/4/13 +66.1bp

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 traded near the lowest levels this year as the U.S. sold $44 billion of the securities at the second-lowest cost to the government on record. The notes drew a yield of 0.88 percent, compared with the forecast of 0.885 percent in a Bloomberg News survey of seven of the Federal Reserve’s 18 primary dealers. The record low yield was the 0.802 percent at a $44 billion sale of two-year notes in November. The Federal Open Market Committee, whose two-day policy meeting ends today, is likely to maintain its pledge to keep its main interest rate “exceptionally low” for an “extended period.” The current two-year note yield fell two basis points to 0.80 percent.

Commentary/New Issues

Corporate:
$2B REPUBLIC OF HUNGARY BAA1/BBB 6.25% 1/29/20 +265bp
$1.5B CREDIT AGRICOLE AA1/AA-, 2/1/12 3ML+35bp

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 for the first time in four days as stocks rose and the U.S. prepared to sell a record-tying $44 billion of the debt tomorrow. The drop pushed the 2-year note’s yield up from a one-month low before today’s offering, the first of three this week totaling $118 billion. Treasuries declined amid signs Federal Reserve Chairman Ben S. Bernanke is likely to win confirmation for a second term after wavering political support spurred demand for the safest securities last week. The two-year note’s yield increased two basis points, or 0.02 percentage point, to 0.81 percent. Two-year note yields fell below 0.8 percent for the first time in a month last week amid speculation President Barack Obama’s bank regulation plans will crimp economic growth and lawmakers raised questions about confirming Bernanke.

Commentary/New Issues

Corporate:
$1.5B ADOBE SYSTEMS BAA1/BBB+ $600M 3.25% 2/1/15 +93bp; $900M 4.75% 2/1/20 +120bp

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 as stocks tumbled amid concern President Barack Obama’s regulation plans would reduce risk-taking at banks, spurring investors toward the safety of government debt. Ten-year notes gained for a second day as Obama called for limiting the size and trading activities of financial institutions as a way to prevent another financial crisis. JPMorgan Chase & Co. and Morgan Stanley slumped more than 5.9 percent. More Americans than forecast filed initial claims for jobless benefits last week. The yield on the benchmark 10-year note fell four basis points to 3.59 percent. The Standard & Poor’s 500 Index fell 1.8 percent. The S&P 500 Financials Index dropped 3.1 percent, its biggest decline since October.
Upcoming economic data: Mon - Existing home sales; Tue - Consumer Confidence; Wed - New Home Sales; Thurs - Durable Goods, Jobless Claims; Fri - GDP, Consumer Sentiment

Commentary/New Issues

Corporate:
$250M VALIDUS HOLDINGS BAA2/BBB- 8.875% 1/26/40 +449.8bp
$500M DIGITAL REALTY TRUST BAA2/BBB 5.875% 2/1/20 +250bp
$1.25B NORDEA BANK AA2/AA- 4.875% 1/27/20+135bp
$2.25B EDF AA3/A+ $1.4B 4.60% 1/27/20 +105bp; $850M 5.60% 1/27/40 +115bp

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 as stocks tumbled amid concern President Barack Obama’s regulation plans would reduce risk-taking at banks, spurring investors toward the safety of government debt. Ten-year notes gained for a second day as Obama called for limiting the size and trading activities of financial institutions as a way to prevent another financial crisis. JP Morgan Chase & Co. and Morgan Stanley slumped more than 5.9 percent. More Americans than forecast filed initial claims for jobless benefits last week. The yield on the benchmark 10-year note fell four basis points to 3.61 percent. The Standard & Poor’s 500 Index fell 1.8 percent. The S&P 500 Financials Index dropped 3.1 percent, its biggest decline since October.

Commentary/New Issues

Corporate:
$4B MORGAN STANLEY A2/A $2B 4.10% 1/26/15 +175%; $2B 5.50% 1/26/20 +190bp
$250M VALIDUS HOLDINGS BAA2/BBB 8.875% 1/26/40 +449.8bp
$500M DIGITAL REALTY TRUST BAA2/BBB 5.875% 2/1/20 +250bp
$1.25B NORDEA BANK AA2/AA- 4.875% 1/27/20 +135bp

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 as disappointing U.S. corporate earnings and China’s move to limit bank lending raised concern that global growth may not be as robust as anticipated, adding to the allure of U.S. government debt. Ten-year note yields traded near their lowest levels in a month as Morgan Stanley’s earnings missed analysts’ estimates and IBM’s business-consulting revenue dropped. Reports showed U.S. housing starts fell more than forecast and producer prices rose. The yield on the 10-year note fell four basis points to 3.66 percent. It reached as low as 3.63 percent, a level previously reached on Dec. 21. Housing starts declined to an annualized 557,000 units last month, down 4 percent from November. Starts were projected to fall to a 572,000 pace last month, according to the median estimate of a Bloomberg survey. Building permits, a sign of future construction, climbed to the highest level in a year. Prices paid to factories, farmers and other producers rose 0.2 percent in December. Excluding food and fuel, so-called core prices were unchanged.

Commentary/New Issues

Corporate:
$4B KFW AAA/AAA 4.00% 1/27/20 +38.5bp
$1BN NORDIC INVESTMENT BANK AAA/AAA 1.625% 1/28/13 28.4bp
$1B NISSAN MOTOR ACCEPTANCE BAA2/BBB $250M 3.25% 1/30/13 +195bp; $750M 4.50% 1/30/15 +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 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 for the first time in three days as stocks gained, dampening demand for U.S. debt amid bets the rally that pushed 10-year note yields to the lowest levels in almost a month may not be sustained. Ten-year notes declined after last week posting the biggest gain since November amid indications the economic recovery has yet to take hold. Citigroup Inc. reported a fourth-quarter loss of 33 cents a share, narrower than last year’s record $3.40 loss. The yield on the 10-year note rose two basis points to 3.70 percent. It earlier touched 3.64 percent, the lowest level since Dec. 21. The yield fell 15 basis points last week as retail sales unexpectedly declined and consumer prices rose less than forecast.

Commentary/New Issues

Corporate:
$450M TRANS ALLEGHENY INTERSTATE BAA2/BBB- 4.00% 1/15/15 +162.5bp
$2.5B BANK OF NOVA SCOTIA 2-PT AA1/AA- $1B 2.25% 1/22/13 +83bp; $1.5B 3.40% 1/22/15 +98bp
$2.5B REPUBLIC OF ITALY AA2/A+ 3.125% 1/26/15 +74.75bp

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.

CREDIT MARKETS

Treasuries:
Treasuries rose, with 10-year notes headed for their biggest weekly gain since November, after a government report showed the cost of living rose less than forecast in December. Two-year note yields, most sensitive to monetary policy, have fallen the most in the last two weeks since November 2008 as reports showed the U.S. economy unexpectedly lost jobs and retail sales declined in December. Demand rose at last week’s auctions of 10- and 30-year debt as investors questioned the strength of the economic recovery. The 10-year note yield declined eight basis points to 3.66 percent. The yield fell 16 basis points on the week, the most since it dropped 17 basis points over the five days ended Nov. 27. Two-year note yields fell as much as six basis points to 0.86 percent, the lowest level since Dec. 22. The yield’s 27 basis point decline since Jan. 4 is the most since the 34 basis points it lost over the 10 trade days ended Nov. 14, 2008, when the Federal Reserve cut its target rate below 1 percent as the economic outlook worsened after the collapse of Lehman Brothers.
Upcoming economic data: Tues.: Consumer Confidence; Wed.: MBA Purchase Applications, Producer Price Index, Housing Starts; Thurs.: Leading Indicators, Initial Jobless Claims

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 surged after a report showing sales at U.S. retailers unexpectedly fell in December spurred the strongest demand in four months at yesterday’s $13 billion auction of 30-year bonds. Yields on the so-called long bond fell as the bid-to-cover ratio was 2.68, the most since September. Demand at Wednesday’s 10-year sale was the strongest since October, while direct bidders bought the most of the 3-year notes at the Jan. 12 sale since at least 2003. The yield on the 30-year bond fell 10 basis points to 4.63 percent. Direct bidders bought 4.9 percent of the bonds sold yesterday. The same investor class bought 17.3 percent of the 10-year notes offered on Wednesday, the most since May 2005, and 23.4 percent of the three-year notes sold Jan. 12, the most since at least 2003.

Commentary/New Issues

Corporate:
$250M DELPHI FINANCIAL GROUP BAA3/BBB 7.875% 1/31/20 +414.1bp

ABS:
Nothing

Agency:
$4.5BLN FANNIE MAE 1.750% 2/22/13 +29.5bp

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

CREDIT MARKETS

Treasuries:
Treasuries declined after an investor class that includes foreign central banks bought the least amount of 10-year notes offered at yesterday’s $21 billion auction of the securities since April. Yields on government securities rose as the Federal Reserve said that the U.S. economy improved in 10 of the central bank’s 12 districts last month. Investors are the most bearish on Treasuries in more than two years as the reliance on government debt to revive economic growth weighs on sovereign issues. The yield on the 10-year note rose seven basis points to 3.78 percent. Indirect bidders bought 29 percent of the notes, compared with an average for the past 10 auctions of 38.8 percent. President Barack Obama is depending on foreign investors to help finance the nation’s debt. Overseas investors held $3.5 trillion, or 50 percent of the U.S. public debt as of October, according to the most recent data available from the Treasury. The outstanding public debt reached $7.27 trillion in December.

Commentary/New Issues

Corporate:
$2B BANK OF TOKYO-MITSUBISHI 2-PT AA2/A+ $1B 2.60% 1/22/13 +112.5bp; $1B 3.85% 1/22/15 +135bp
$600M PROVINCE OF MANITOBA AA1/AA 2.125% 4/22/13 +62.68bp
$1.5B SANTANDER US 2-PT AA2/AA $500M 2.485% 1/18/13 +100bp; $1B 3.724% 1/18/15 +120bp

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.