CREDIT MARKETS

Treasuries:
Treasuries rose as concern global economic growth will slow drove stronger-than-forecast demand at yesterday’s record-tying $40 billion sale of three-year notes. Ten-year notes climbed the most in almost a month as stocks fell after Alcoa Inc.’s earnings trailed estimates and China moved to curb bank lending. Direct bidders purchased the most of yesterday’s offering of three-year notes since at least 2003. The yield on the 10-year note fell 10 basis points to 3.72 percent. The yield fell as much as 11 basis points, the most on an intraday basis since it dropped 13 basis points on Dec. 17. The yield on the current three-year note fell six basis points to 1.44 percent. Direct bidders bought 23.5 percent of the three-year notes offered yesterday, compared with an average of 6 percent at the past 10 offerings.

Commentary/New Issues

Corporate:
$850M DEUTSCHE BANK AA1/AA FLOAT 1/19/12 3ML+30bp
$1B NASDAQ OMX GROUP 2-PT BAA3/BBB $400M 4.00% 1/15/15 +162.5bp; $600M 5.55% 1/15/20 +187.5bp
$1B STRYKER CORP 2-PT A3/A+ $500M 3.00% 1/15/15 +55bp; $500M 4.375% 1/15/20 +75bp
$1.5B UBS AG AA3/A+ 3.875% 1/15/15 +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 offerings mentioned and therefore offerings will be subject to availability.
All statistical data is sourced from Bloomberg Financial Markets.

CREDIT MARKETS

Treasuries:
Shorter-term Treasuries rose as investors added to bets the Federal Reserve will keep interest rates at virtually zero in the first half of the year. Two year note yields touched the lowest level in over two weeks as Fed Bank of Atlanta President Dennis Lockhart said the recovery will be slow. The yield fell last week the most since August after a report showed the economy unexpectedly lost jobs in December. The U.S. will sell a record-tying $40 billion of 3- year notes today in the second of this week’s four note and bond auctions totaling $84 billion. Two-year note yields fell four basis points to 0.94 percent. The yield touched 0.92 percent, the lowest level since Dec. 24.

Commentary/New Issues

Corporate:
$4.25B PEPSICO 4-PT AA2/A+ $1.25B FLOAT 7/15/11 3ML+3bp; $1B 3.10% 1/15/15 +57bp; $1B 4.50% 1/15/20 +73bp; $1B 5.50% 1/15/40 +85bp
$500M PRAXAIR A2/A 2.125% 6/15/13 +65bp
$1.25BLN PRUDENTIAL FINANCIAL 2-PT BAA2/A $500MM 2.75% 1/14/13 +130bp; $750MM 3.875% 1/14/15 +135bp
$2.5BN CREDIT SUISSE AG AA2/A 5.40% 1/14/20 +162bp

ABS:
Nothing

Agency:
$1.4BN FFCB DESIGNATED BOND 1.75% 2/21/13 +33.5bp

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:
Treasury two-year notes gained the most in three weeks after a report showed the economy unexpectedly lost jobs in December, signaling the labor market has yet to emerge from its worst slump since World War II. Two-year note yields dropped below 1 percent after the Labor Department said employers eliminated 85,000 positions last month, compared with a median estimate of economists surveyed that projected no change. The Federal Reserve Bank of Boston said unemployment will stay “quite elevated” while the economy recovers, warranting continued low interest rates. The benchmark two-year note’s yield fell five basis points to 0.97 percent. It declined as much as eight basis points, the biggest drop since Dec. 17.

Upcoming economic data: Tue: International Trade Wed: MBA Purchase Applications, Treasury Budget Thurs: Retail Sales, Jobless Claims Fri: Consumer Price Index, Industrial Production, Consumer Sentiment

Commentary/New Issues

Corporate:
$1.9B CROWN CASTLE TOWERS 3-PT A2/A $300M 4.523% 1/15/35 +200bp; $350M 5.495% 1/15/37 +225bp; $1.25B 6.11% 1/15/40 +237.5bp
$1.75B RABOBANK AAA/AAA 4.75% 1/15/20 +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 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 the number of Americans filing first-time claims for unemployment benefits rose less than forecast last week. Two-year note yields rose three basis points to 1.03 percent. Two-year interest-rate swap spreads shrank almost to the narrowest in six years on speculation today’s employment report will show the nation’s economic recovery is picking up speed. The difference between the rate to exchange floating- for fixed-interest payments and Treasury yields for two years narrowed as much as 1.1 basis point yesterday to 27 basis points. The 10-year swap spread increased 1.94 basis points to 12.19 basis points after touching 8.63 basis points on Jan. 5, the lowest level since Nov. 30.

Commentary/New Issues

Corporate:
$1.75B IRISH LIFE & PERMANENT, GVT-GTD NOTES, 3.60%, 1/14/13, +203.5bp
$1B MACQUARIE GROUP, A2/A-, 6.00%, 1/14/20, +220bp
$1.75B ING BANK, AA3/A+, $750M, FLOAT, 1/13/12, 3ML+63bp; $1B, 2.65%, 1/14/13, +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:
Treasury 10-year notes fell for the first time in three days as some Federal Reserve policy makers said more stimulus “might become desirable” and the U.S. prepared to announce next week’s note and bond auction sizes. The yield difference between 2- and 10-year notes reached the widest in more than a week as minutes of the Fed’s December meeting showed officials debated increasing asset purchases should the economy weaken and predicted unemployment will be high for “some time.” Bill Gross, who runs the world’s biggest debt fund at Pacific Investment Management Co., said asset markets in the U.S. and U.K. may suffer as governments withdraw stimulus measures. Ten-year note yields rose six basis points to 3.82 percent.

Commentary/New Issues

Corporate:
$1BLN, Berkshire Hathaway, 2-PT AA2/AAA, $250MM, FLOAT, 1/31/12, 3ML+12.5; $750MM, 5.75%, 1/15/40, +115bp
$2.5BLN, Met Life Global Funding, AA3/AA-, 2 PT: $1BLN, FLOAT, 7/13/11, 3ML+40bp; $1.5BLN, 2.50% 7/13/13, +103bp
$1.5BLN, Rentenbank, AAA/AAA, 3.125%, 7/15/15, +62.9bp
$2BLN, Motiva Enterprises, 2-PT, A2/A, $1BLN, 5.75%, 1/15/20, +200bp; $1BLN, 6.85%, 1/15/40, +225bp
$3BLN, ANZ Banking Group, 3-PT, AA1/AA, $500MM, 2.40%, 1/11/13, +87.5%; $1.25BLN 3.70 %, 1/13/15, +115bp; $1.25BLN, 5.10% 1/13/20, +130bp

ABS:
Nothing

Agency:
$4BLN, Freddie Mac, Aa3/AA-, 2.875%, 2/9/15, +27.5bp

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 rose for a second day as investors bet the biggest monthly increase in 10-year note yields in almost six years was overdone and pending sales of existing U.S. homes fell more than forecast in November. Ten-year note yields touched the lowest levels in almost two weeks after rising 64 basis points in December, the most since April 2004. The number of contracts to buy previously owned U.S. homes dropped 16 percent, more than the 2 percent decline forecast in a Bloomberg News survey, signaling the industry whose slump led America into recession has yet to recover. The yield on the benchmark 10-year note declined seven basis points to 3.75 percent.

Commentary/New Issues

Corporate:
$5BLN, Lloyds, 2-PT, AA3/A+, $2.25BLN, 4.375%, 1/12/15, +182bp; $2.75BLN, 5.80%, 1/13/20, +208bp
$4.5BLN, Dexia, 2-PT, AA1/AA+, $2.5BLN, FLOAT, 1/12/12, 3ML+25bp; $2.0BLN, 2.75%, 1/10/14, +72.2bp
$4BLN, GE Cap Corp, 2-PT, AA2/AA+, $2BLN, 2.80%, 1/8/13, +130bp; $2BLN, 5.50%, 1/8/20, +180bp
$2BLN, Deutsche Bank AG, AA1/A+, 2.375%, 1/11/13, +87.5bp
$1BLN, Brazilian Devlopment Bank, BAA2/BBB-, 5.50%, 7/12/20, +187.5bp
$3BLN, Barclays Bank, AA3/AA-, 5.125%, 1/8/20, +148bp
$4BLN, KfW Bankengruppe, AAA/AAA, 1.875%, 1/14/13, +36.2bp
$3BLN, European Investment Bank, AAA/AAA, 2.875 %, 1/15/15, +33.25bp

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 rose for the first time in two weeks as investors bet that the selloff that pushed yields to the highest level since August is overdone. Bonds pared earlier losses even after the Institute for Supply Management’s factory index rose to 55.9, the highest level in more than three years, from November’s 53.6. The yield on the 1 percent note maturing in December 2011 fell seven basis points to 1.06 percent. The yield rose for nine consecutive days ending Dec. 31, when it reached 1.21 percent, the highest since Aug. 12. The last time the yield on the note rose for more consecutive days was on April 14, 2008, when it began a 10-consecutive day increase. Ten-year note yields fell one basis point to 3.82 percent. They reached 3.90 percent, near the highest level since June.

Commentary/New Issues

Corporate:
$1.75BN, National Bank of Australia, 2-PART, AA1/AA, $1.25BLN, 2.50% 1/08/13, +87.5bp; $500MM, FLOAT, 1/08/13, 3ML+48bp

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.